House price growth across is to remain essentially flat in 2018, according to the latest Nationwide House Price Index, which predicts growth of only 1%.
According to the report, modest annual growth in the wider economy of 1-1.5%, combined with stagnating household finances will act as a drag on house prices, holding down growth and keeping activity in the housing market subdued over the next 12 months.
The report also notes that house price growth already slowed over the last year, with prices up by only 2.6% annually in 2017, compared to 4.5% in 2016.
Despite this modest growth in 2017, property prices ended the year down slightly month on month, recording a fall of 0.6%, according to the Halifax.Robert Gardner, chief economist at Nationwide, said; “Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices. However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.
“The impact of previous policy changes, including additional stamp duty on second homes, changes to tax deductibility of landlord expenses and lending criteria, meant that demand from buy to let investors remained subdued in 2017.”
In 2017, London house prices were hit hardest by the slowing market, falling by 0.5% over the year.
We can help.
These figures will be worrying for homeowners already struggling with negative equity. With prices stagnant across the UK and some areas even seeing prices fall, mortgage borrowers with negative equity will have no hope of seeing their property gain enough value to overtake the shortfall.
So, if you’re struggling to sell a home you can’t afford, or you’re trapped in arrears or negative equity on your property, then we can help.
At Negative Equity UK, our team of property debt specialists offers a range of possible solutions based on your individual situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.
We don’t adopt a one size fits all approach to helping our clients. Instead, we offer bespoke solutions based on your specific needs and circumstances.Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.
If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 0161 631 2727 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.