UK property market slowdown: What factors are to b

Posted on JUL 26th 2017 BY Mark Burns
  • UK property market slowdown: What factors are to blame?

Recent months have seen the UK property market starting to slow down. So what has caused this, and will it change?

Whilst sellers will be less than pleased that the property market in the UK has stagnated, buyers are likely to be celebrating. Land Registry data shows that the growth in house prices in June sat at 5.6% which is down 8% on the same time last year..

Whilst the high value end of the market has attracted a lot of the focus, there is evidence that the changes are not exclusive to London, and a softening is being felt across the whole of the UK.


The EU referendum had an impact on all markets, but property seems to have seen the largest shift. The decision to leave the European Union drove down the number of people moving house, with a fall of 9% in the second half of 2016.

Political uncertainty relating to the economy coupled with wage rates failing to grow impacting on the thinking of many buyers. Many have been worried about higher rates of inflation impacting on household finances, whilst others are concerned with regards to job security and wages.


Whilst low interest rates have been around for some time, the number of mortgage approvals has slid to a seven-month low. This due to changes in lending rules which are designed to prevent buyers overstretching themselves.

Rules which ensure banks can only lend more than 4.5 times the borrower’s salary to 15% of those on their books keeps deposits high, particularly for first-time buyers.

Whilst some predict that we could see an interest rate rise next year, this is likely to create a further drag on house price growth.

The slowdown in the market does not mean that growth has stopped entirely, and industry experts predict that the average UK house price will still continue to grow by 13% in the next four years. This is largely due to a lack of housing stock and an ageing population which will drive demand during that time. With only half the homes we need actually being built, there is a significant discrepancy between supply and demand.

It is expected that 25% of the population will be over 65 by the time we reach 2030, and therefore more people are staying in their homes for longer, causing yet more shortages for those coming into the market.

The government is now starting to shift towards building more rental homes, meaning that the private rental sector is likely to become increasingly buoyant in the next few years.

Whilst it is true is that while house price growth has eased, the UK property market is still buoyant with growth remaining above inflation and low interest rates contributing to high returns on investment. A slowdown does not signify a crisis, but more a change in direction for the market.

Category: News

POSTED BY  Mark Burns

< back to articles


Would you like to save the search?
Please choose Yes if you would like to receive email alerts when properties matching your search criteria become available on our website.
Holland Road, London, NW10
£1,192 Per Calendar Month
1 bedroom, 1 bathroom
An impressive & most well proportioned one double bedroom apartment, on the first floor of attractive period style mid terraced house, which has been converted to a good standard, comprising of a bright reception room into bay with sash windows, hardwood work tops in a contemporary style white lacquered fitted kitchen and modern bathroom combined w.c, additional benefits include period features and gas central heating.The property is on a broad residential Avenue close to the junction of Ridley Road, within walking distance of a variety of local shopping and transport facilities.Available Now
Kensal Road, London, W10
£606 Per Calendar Month
0 bedroom, 1 bathroom
Warwick's is pleased to offer a selection of self contained studio apartments close to the many amenities of Ladbroke Grove. Set within a small purpose built block, over looking the Cannal, these fully furnished studio's range, comprise of good size reception rooms with modern fitted kitchenette and separate bathrooms, wooden floors throughout and internet access. Note: Rent includes electricity, gas and water rates. Available Now
Harlesden Gardens, London, NW10
£866 Per Calendar Month
1 bedroom, 1 bathroom
A one double bedroom split level apartment, set on the second (top) floor of this older style mid-terraced house. Comprising of a 17" reception room, on an upper level along with a separate modern fitted 10" kitchen/breakfast room, and bathroom combined w.c, benefits include entry-phone, gas central heating and located within close proximity of local shops and transport facilities.
Olive Road, Cricklewood, NW2
4 bedrooms, 2 bathrooms
Own entrance... bright, well proportioned, four double bedroom maisonette, which has recently undergone full refurbishment to a high standard, on the first & second floor of this period style semi detached house. Boasting private rear garden & roof terrace, located in close proximity of both Willesden Green & Edgware Road numerous amnesties.The property offers a generous 944sq" of living accommodation, all four bedrooms fit a double bed, high ceilings in a sizable 17" reception room, (the full width of the building), contemporary white lacquered kitchen, large ceramic tiled family bathroom combined W.C, en suite bathroom, and gas central heating throughout.In quiet residential road, only a stroll from bothWillesden Green (Jubilee Line) tube, Sainsbury's store and Cricklewood alternative shops and transport links.
Willow Avenue, Uxbridge, UB9
5 bedrooms, 3 bathrooms
Abundance of charm & characterů unique sympathetically restored and extended detached Victorian cottage canal side, on the River Colne, set in its own large south/easterly facing rear grounds and off street parking for several cars. The property offers over 1582 sq ft living/entertaining accommodation with large slabs of marble style flooring throughout the ground floor & low voltage lighting, three sets of French doors leading out to garden from a 24ft drawing room, living room overlooking the lock, dining area with a wood burner and downstairs bedroom & shower room. On the first floor French doors leading out to roof from master bedroom with storage space and en-suite bathroom, a further three bedrooms and ivory coloured marble slab style fully tiled family bathroom. Rail and tube connections are available to Marylebone and The London Underground by Denham station (1.9 miles) and Uxbridge Tube station (0.5 miles). The M40 may be accessed via Junction 1 (0.3 miles) and provides access to Heathrow, London and the M25.
Buchanan Gardens, Kensal Rise, NW10
2 bedrooms, 1 bathroom
Attractive broad tree lined road... larger than usual with a lot of potential, presently arranged as a two double bedroom apartment with a new lease, on the first floor of this two stories mid-terraced period style house, only minutes from local transport facilities.The property offers 758sq" of living accommodation over the entire floor, south facing with high ceilings in the reception room into bay window, sizeable fitted eat in kitchen and modern fitted bathroom combined W.C.Buchanan Gardens is a sought after residential, broad, leafy lined Road, walking distance of both Kensal Rise & Green over/underground train stations, a variety of local shops on the trendy, buzzing Chamberlayne Road, and alternative transport links.


I trust Warwick's with my portfolio
by R. Gensty (Landlord) 18/06/2017
In these hard times, success
by C. Bode (Vendor) 23/05/2017
Good persistence & dedication
by G. Rubinstein (Landlord) 06/05/2017


* Required
Cookie Policy

The cookie settings on this website are set to allow all cookies to give you the very best experience. If you continue past this page without changing these settings, you consent to this. You can change your cookies settings at any time in your browser.

More Information     OK