Homeowners and hopeful home buyers in the UK will have been surprised to see that the average house price increased last month despite an expectation of a decline. The housing market continues to outperform forecasts due to several factors according to experts. The strong employment growth, a shortage of properties on the market, and continued low interest rates are creating an environment in which the unexpected keeps occurring.

It would seem that the unsteady global economy, Brexit, and other concerns would keep consumers from investing in property, however hopeful home buyers find that opportunities are too good to pass up. Thus, they are showing up in the housing market and grabbing up properties and the low interest rate mortgages available.

Homeowners as well are taking notice of attractive low interest rates and are shopping for remortgage deals to secure their financial future in the shadow of threats of increased interest rates soon to appear.

In August the average house price increased by 1.1% to £222,293 according to Halifax. The average price was 2.6% higher than last year in the three months to August.

Halifax managing director Russel Galley stated, “Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42-year low.”

Volume of sales has increased as well having exceeded 100,000 over the past seven months.

The housing market’s tight supply and the continued low interest rates offered by lenders should keep those hoping to climb onto the property ladder showing up and impacting the average house price for the UK. However, London property prices will likely continue to show less buoyancy due to the high prices already existing. Some natural correction to London’s prices is due.

For those that are considering a property purchase or a remortgage, perhaps the close of summer and start of the autumn season will be the best of the year to take action.