Are Basingstoke Property Prices Set to Fall?

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According to the Halifax House Price Index released in July, UK average house prices fell by 1.0% in June, with house prices in the three months to June down 0.1% compared to the previous quarter. This brings the average price of a house or flat down to £218,390. This is the third successive quarterly decline.

 

Measured on an annual basis, the average growth in house prices fell to 2.6% which is the lowest rate since May 2013.

 

Nationally, house prices are now 9% above their peak in August 2007, and 41% higher than their low point in April 2009.

 

The volume of house sales dropped by 3% between April and May, however, however sales in the three months to May were actually 1% higher than the preceding three months. We are likely to see a similar drop between May and June due to the general election.

 

Mortgage approvals between April and May edged up 0.2% suggesting that house sales are likely to remain steady over the coming months. 47% of all house purchases financed with a mortgage were made by first time buyers.




 
On the whole, finances continue to be squeezed, with consumer prices and costs rising faster than wage increases, new stamp duty on buy to let and second homes and a lack of available property on the market are the main drivers for this weakening of the housing market.
 
Basingstoke
In Basingstoke, the average price of a property now stands at £308,818. This is an annual increase of 7.25% from the same time last year. However, the volume of sales has seen a significant decline from an average of 300 per month in 2016, to 170 per month in 2017.
 
Basingstoke has consistently outperformed the national average, and the slowdown in the volume of sales, as nationally, can largely be attributed to the election and increases in stamp duty. It will be interesting to see what the sales volume looks like after the summer holidays.
 
Despite some of the recent headlines, we remain positive about the performance of the market in Basingstoke, but we may see a seasonal slowdown over the summer months before we start to see an increase in sales volume.
 
 


Location: Basingstoke, UK

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