The Benham and Reeves home worth index makes use of knowledge from the 4 main business indices to offer a singular determine of how the UK market is transferring primarily based on each purchaser and vendor sentiment. It additionally appears to be like on the distinction in these indices and what they reveal in regards to the state of the present market.

Present property values
The most recent index from Benham and Reeves reveals that the present total common UK home worth is sitting at £252,487 having elevated by 0.3% on the earlier quarter, up by 0.9% on an annual foundation.

In London, the common property worth climbs to £513,180, up 0.2% on the earlier quarter, though costs within the capital are nonetheless down -0.8% on an annual foundation.

Sellers stay over expectant
The most recent quarterly knowledge from Nationwide and Halifax reveals that the quantity UK patrons are committing to borrowing has fallen -0.7% to a median of £224,490.

Robust market situations have additionally prompted the common asking worth anticipated by UK house sellers to fall quarter to quarter. Nonetheless, the drop has been extra marginal at -0.4%, and at £306,321, the common UK asking worth continues to be some 36.5% greater than the mortgage approval sum.

This over expectation can also be evident when evaluating asking costs to bought costs, with the present common bought worth coming in at £234,075, -23.6% decrease than the present common asking worth, though gross sales costs themselves have crept up 2.1% on the earlier quarter.

A more durable time for the London market means this hole between vendor expectation and market actuality is smaller.

Nonetheless, the distinction between the common worth authorised by Nationwide and Halifax and the common asking worth continues to be at 33.1%, whereas bought costs within the capital are nonetheless some -21.9% decrease than the present common asking worth. Though, once more, bought costs have elevated by 2.6% quarter to quarter.

Director of Benham and Reeves, Marc von Grundherr, commented: “An over-inflated asking worth is a standard prevalence available in the market and one typically pushed by a vendor’s feelings coupled with the tendency for an agent to overvalue with a view to win enterprise.

Nonetheless, with political uncertainty inflicting a big diploma of market turmoil, we’ve seen many sellers decrease their asking worth expectations with a view to safe a sale. Because of this, there was a slight uplift in bought costs as patrons agree to fulfill within the center. Nonetheless, the deficit between what we consider our houses are price and what patrons are literally paying stays quite giant.

As we enter a brand new decade, we may even see this hole proceed to shut, however the chances are as market exercise heightens we’ll as soon as once more see asking costs enhance as purchaser exercise returns and UK house sellers likelihood their arm at a better worth level.”

Knowledge sourced from the Land Registry House Value Index, the Halifax and Nationwide House Value Indexes and the Rightmove House Value Index.

Learn extra articles on the present state of the UK property market in our devoted part right here.