Lack Of Supply Impacting On UK House Prices

January is often a slow and miserable month for many people. The after-effects of the festive period leaves many of us beginning the New Year looking to improve our health and our finances. With the weather being mainly grim as well, it is easy to see why most people look to get through the opening month of the year and then start afresh in February. However, according to figures provided by Nationwide, the UK property market was particularly perky in January of 2018, with house prices rising.

A lack of supply is a major issue in UK housing market

Most of the predictions regarding house prices in 2018 suggested that house prices would fall or at least slow down in their growth. This means that many people, including economists at Nationwide themselves, were surprised at some of the figures for January 2018, which included:

  •    The fastest annual pace rise in 10 months
  •    An average property price of £211,756
  •    An increase in property values of 0.6% compared to December 2018
  •    An annual growth rate of 3.2%, up from 2.6% the previous month

While all these figures look promising, analysts are advising that the overall outlook for the rest of 2018 is one of slow growth rates and some areas experiencing a fall in property prices. The focus on falling house prices looks set to represent west and central London, areas which have witnessed extensive growth in the past decade.

Affordable housing is required in London and across the UK

Even though factors like affordability and Brexit are impacting on the property market, the rise in property prices has been out down to one issue which has been a constant factor in the UK property market of late. There is a lack of housing in the UK and perhaps more pertinently, there is a lack of affordable housing in the United Kingdom.

When there is limited supply, price will rise to meet demand, and this has been the underlying factor in the property market.  Even though many observers still believe that this growth is unsustainable, there are some factors that could see this level maintained. Many buyers can access appealing mortgage rates, there is a high level of employment, the likelihood that consumer price inflation will be at a moderate level and the afore mentioned limited supply of housing all provide reasons as to why the slump in house prices that many predict may not unfold.

It is not always helpful to look at the UK property market as a single entity. It is not even beneficial to consider the London property market as a single unit, the breadth and depth of variety available across the capital means that while some areas will not be suitable for many buyers, there are still plenty of areas that are welcoming to first-time and second-step buyers.

There are so many factors influencing the London property market, it can be difficult to stay up to date. If you would like assistance in understanding the London property market and knowing the latest news, be sure to contact Unico Property Group and we will be happy to help.


Residential Sales
Whether you’re buying or selling, rest assured that Unico will take care of everything from start to finish. We recognise that no two transactions are the same so we tailor our service to suit your needs and promise to give you all the support and information you need.
Residential Lettings
Unico understand the need for good quality tenants and so we vet every applicant thoroughly before offering a tenancy. As members of ARLA our service is regularly scrutinised to ensure compliance to their codes of conduct towards both landlords and tenants.
Did you know that to remortgage your Buy to Let investment your mortgage company will insist on a valuation letter from an ARLA agent? Unico also offers financial mortgage advice for purchasers including first time buyers so come to see us.
Rent Guarantee Insurance
As a landlord we understand that loss of revenue can seriously impact on your finances. With Unico’s Rent Guarantee Insurance scheme you can rest assured that you will still receive your rent payments if the tenant’s circumstances change.
Property Management
Unico can take care of the day to day management of your property portfolio including rent collection, property maintenance using our easy to use online repair reporting portal, renewals, rent increases and deposit registration services.
Whether you are looking to acquire a commercial unit or selling or letting your own commercial space, Unico have the knowledge, skill and experience to help.