With all the torrential rain in the last few days, I’ve been thinking about all those poor people whose homes and businesses have been flooded out, especially across our area.
Although fortunately for those of us who invest in property here, Bristol has escaped the worst.
Meanwhile there’s plenty of talk as usual in the media about the damp squib – aka the UK housing market.
While it’s true of course that the market is fairly flat in terms of prices, it doesn’t have to been seen in such a negative light.
First of all, prices are currently pretty stable.
Second – and most important – there are some great property investment opportunities out there.
So, let’s take a look at another of the recent surveys:
UK property prices were down -0.7% last month, according to the recent Halifax House Price Index.
However, prices in the three months to October were 1.2% lower than in the preceding three months – so the monthly trend is slightly improving.
Most commentators agree that the weak economic background has been the most important factor dampening housing demand this year. They also believe that recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months.
Key facts from the Halifax
- House prices in the three months to October were 1.2% lower than in the preceding three months. This was the fifth successive decline in this measure of the underlying trend and compared with a 0.5% fall in September
- Prices in the three months to October were 1.7% lower than in the same period a year earlier. This is very similar to the annual rate recorded a year ago: -1.8% in October 2011
- House prices decreased by 0.7% in October;
- The modest rise in mortgage approvals continues. The industry-wide number of mortgages approved to finance house purchase – a leading indicator of completed house sales – increased for the third successive month in September. Approvals increased by 4% to 50,000 in September, but were still 2% lower than in September 2011
As I’ve said before, I firmly believe that while the greater stability in the market makes it harder to track down the really good opportunities, and you do need to weigh everything up carefully, there are still plenty of great options if you know exactly where to look and have good contacts.
It’s certainly not the stormy situation our weather is in!
Del Brown, Property Investment Expert and author of Making Money From Property – Bristol Fashion
