London House Prices Tumble
Surelock Network Auctions Sept Newsletter
Welcome to Surelock Network Auctions’ September 2017 Newsletter. As the autumn takes root across the UK, there’s a lot of interesting news going on. Some of it pertains directly to the UK housing market, while some does a little less so. Either way, it’s all keeping us busy. There are two we’ve managed to pick out this month, but it was a tough decision!
London House Prices Tumble
After years of leading house price gains, it seems London’s housing market really is struggling to bounce back from the Brexit-induced weakness. Rightmove’s September index showed the average price in Greater London fell 3.2%, the biggest monthly fall since 2010 and pushing the average price for a property across England’s capital to £610,912. In August, it was £629,270.
A separate report from Zoopla, meanwhile, showed that some 34% of properties advertised for sale on its website had been reduced in price. And, the average reduction in London was £52,457.
All this is happening even though overseas buyers remain busy in the London market. They’re taking advantage of a double discount from the weaker pound and falling property values.
And what does all this mean for you? Well, with prices falling rapidly across London, now might be the perfect time to visit your next property auction and see how potential buyers are valuing a city investment. You might just be surprised at how much you can get for your money in London!
Interest Rate Hikes Ahead
It seems the US Federal Reserve Central Bank (Fed) and the UK’s Bank of England (BOE) are both on course to raise interest rates before the year-end. Of course, the Fed was the first to do so earlier in July when it raised interest rates to 1.25%. However, a second hike is on the cards and the BOE may well follow suit as soon as November.
For the US, raising rates is tricky due to inflation. But, with the US economy performing well, Fed chair Janet Yellen has made it clear the Bank must do what’s best for the whole economy and not just wait for inflation to rise before it makes a move. This kind of talk has helped support the US dollar which strengthened earlier this week following a speech Yellen gave, saying exactly that.
The pound, meanwhile, has enjoyed a boost from rate hike talk from BOE governor Mark Carney too. But, with the US in ascendancy and further supported by President Donald Trump’s tax reform plan unveiled on Wednesday, the dollar remains the stronger currency of the two.
A weaker sterling is good for UK exporters as it makes the price of their goods cheaper. However, it makes the price of importing goods more expensive, so it’s positive and negative for the economy.
We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.
Upcoming auctions: London, November 7th.