The Reason for the Slowdown in Property Price Growth and the Nationwide House Price Index
Halifax Plc, the UKs largest mortgage lender, gave a reason for the slowdown in property price growth reported by the Nationwide House Price Index. They believe that the affordability of homes across the UK has affected property prices. Today, fewer people can to afford to buy a home than ever before and this has prompted homeowners to reduce their asking prices just to secure a sale.
Martin Ellis, Halifax's housing economist, stated that 'a sustained period of house price growth that exceeds pay rises has made it increasingly difficult for many to purchase a home.'
He elaborates by saying 'this development, together with signs of reduced momentum in the jobs market and squeezed consumer spending power, is expected to curb house price growth during 2017.'
However, it should be noted that the Nationwide House Price Index has uncovered that low mortgage rates mean that the proportion of people's earnings spent on repayments is still relatively modest.
Statistics from the Nationwide House Price Index and average income per household based on geographical region, show that in the last three months of 2016, people spent approximately 30% of their income to cover their mortgage payments, whereas in 2007 as much as 48% of people's wages was used to pay the mortgages on their homes.
With comprehensive knowledge of the UK property marketplace, Springbok Properties has comprehensive knowledge all the current trends as stated by the Nationwide House Price Index. If you're unsure of how any Nationwide House Price Index data effects your property, or if you need to sell your home fast, call us TODAY on: 0800 068 4015.