Capital City Property Prices Estimated to Fall Slightly Next Year
A vote last year which resulted in the UK leaving the EU has resulted in massive amounts of uncertainty within the housing market. Since that time, this uncertainty has created multiple forecasts of house price growth in and out of the capital city. Currently, house prices are predicted to fall next year in the city of London by .3%. This will be the first slide in property prices since the economic crisis of 2009.
Beyond next year, property prices are expected to increase 1.0% in the year 2019, then surge ahead almost 3.0% in the year 2020. That is the same year the UK is planning to exit the EU.
As property prices are expected to fall in the capital city during the next twelve months, remortgage activity is expected to remain strong. After a slow start to this year, remortgage approvals started to take off in the middle of the year. Then, just before the country saw its first increase in the base interest rate in a decade in November, remortgages took off.
Even in the weeks following the increase in interest rates, remortgage approvals have been strong and are expected to remain that way for several months.
Interest rates are still at historic lows and lenders are competing hard for new clients. House owners are finding many benefits with a remortgage including cost savings and access to valuable home equity during the process. Remortgage can now be completed entirely online and final approval times are only a few weeks in length.