Pace in top of market slows down

There is a slowdown at the top of the market as the speed of house price growth in UK’s most popular cities appears to have increased. House price inflation in city is still at 8.4% a year, up from 6.6% in May, but the growth rate appears to be stable over the last three months, following a 20% drop in mortgage approvals in August. There are also predictions from experts that house price will still slowdown in the final quarter due to seasonal causes.uk-market-slowdown

House price inflation in the cities is going ahead of earnings, but the average price is still lower than in 2007. The housing demand is positive against the drop of lower mortgage rates and rising buyer’s confidence, but this state of growth is unstable.

Expert says: “There are signs that the current pace of city level house price growth will likely be seen to slowdown even more. There has been a rush in demand in May but weaker mortgage approvals and comparatively which is getting slower according to the evidences from survey data. House prices in Belfast are still half the level seen in 2007 meanwhile London are 43% higher.”

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