Home Owners Remain Optimistic as Market Slows
The news this week has shown a contrast in opinion between what home owners believe and figures that show the property market is continuing to slow down. Some would say that we need to look at the facts and figures, but what has happened in the past doesn't necessarily show what will happen in the future. Others say that it's public opinion and optimism that matters most, however the real world isn't that easy and even though many people would like to buy a new property, that doesn't necessarily mean that they will able to. Lets take a look at what the current situation is.
What do the Recent Figures Show?
According to the BBC property sales increased by 14% last year and sales improved throughout every region in the UK. This is mainly due to a very strong first half of 2014 with a much quicker moving market then we had seen since before the economic crisis in 2008. During the final quarter of 2015 we saw a slump in sales and according to the Royal Institute of Chartered Surveyors we have now seen a decline in property buyers for a consecutive 6 months.
What do the Newspapers Say?
According to The Daily Mail house prices are moving at their "slowest rate since 2013" and analysts believe that the recent property boom is "coming to an end". The article also highlights that mortgage approvals where 20% less last year and this is also coupled with the fact surveyors have reported a slowdown in new house buyer enquiries. To be fair Surveyors would only be appointed once a mortgage in principle is granted so it's no surprise that surveyor enquiries are related to mortgage approvals. It's also mentioned that that a faster market will occur once people start receiving higher wages, however as recent reports in the news show there does appear to be a wage crisis on the horizon.
What does the UK population believe?
In contrast to all the negative figures and predictions the general UK population seem to have a more optimistic view. Maybe they are too used to experiencing house prices rise and assume that inevitably this will always happen but there may be a continued slump before this happens. Propertywire have reported that 88% of UK home owners still believe that prices will rise in the first half of this year. Amongst all the recent negative news this can be seen as a very positive outlook from the UK population as it's just 4% lower than what was believed this time last year. In the next six months we will be able to see who was right, the analysts, newspapers or the general population.