Is the housing bubble set to burst?

October 2, 2014 by Brendan O'Neill

House Prices

First-time buyers and home movers are anxiously contemplating the news that an increase in interest rates is imminent, along with talk of a house price bubble.

Analysts at Hometrack have said that the growth in house prices has slowed for the first time in over 18 months. August and September saw no change in many house prices across England and Wales, which is a first since January of 2013.

The firm said that its data is obtained and collated from a monthly survey of estate agents and surveying companies, and revealed that only London recorded a decline of 0.1%, and further declines were anticipated to follow as we move into the final quarter of the year.

Whilst recent figures released by the Office for National Statistics showed an 11.7% increase from July 2013 to July 2014, the current Halifax figures show evidence that the market is cooling down.

Hometrack’s director for research, Richard Donnell, said:

“This loss of momentum in price growth comes at the end of a very strong run of 18 months, in which the market was fuelled by pent-up demand, with Help to Buy fanning positive market sentiment. That surge of demand has now receded, bringing the latest cycle to an end.”

With so many points to factor in and consider when buying a property, many people choose to seek the advice of a CeMAP qualified professional. People are reassured in the fact that they will receive honest and transparent advice that is relevant to their needs and circumstances.