13 November 2020
If you are covering the UK House Price Index for September released today, please see the following comment from Gemma Harle, managing director of Quilter Financial Planning’s mortgage network, part of Quilter:
"The UK’s House Price index for September released today is starting to tell a worrying story as on average, house prices have fallen by 0.2% since August 2019. It is no surprise that both house buyers and sellers are choosing to wait to survey the landscape post-Brexit rather than take a gamble in the current uncertain climate.
"However, what’s particularly concerning is that you typically would see an uptick in prices at the end of summer thanks to lots of people choosing to move before the schools go back and the dark nights draw in, but this year the rebound seems to be somewhat muted.
"Similarly, while the annual price increase across the UK stands at around 1.3% this is below the current rate of inflation meaning in real terms house prices have dropped. Regardless of political stance, it is hard to not take notice of the changes in the market due to the political turmoil currently gripping the nation. House prices rise and fall in cyclical fashion and we are due a correction from a historical standpoint. It may be that Brexit is the trigger that sees house prices drop and enter into a downturn. Whether this downturn materialises is something we will likely have a clearer view on in in the next few months.
"However, getting on and off on the housing ladder is not all about house prices. It can be about the security of owning your home or the need to downsize. For buyers and sellers, financial advice is key in this environment. While markets remain uncertain and changeable the basics of financial planning do not and adviser can help you determine the best course, taking into account the totality of your financial assets, your needs and future plans."
For more information contact
Kathleen GallagherExternal Communications Manager
Alex BerryExternal Communications Executive
If you are covering the FCA’s statement highlighting measures to support consumers struggling with debt repayments after 31 October, please see the following commentary from Quilter corporate affairs director, Jane Goodland.
If you’re covering CPI inflation for September please see the following comment from Graham Crossley, head of development for Quilter’s medical advice business. Graham flags that the September CPI rate is what will be used to uplift NHS benefits, which means experts can predict this tax year’s pension annual allowance.