The Brexit negotiations and the political unrest storming the nation, have rocked the housing market, especially in recent days. Fact is, house price has slowed in the recent months, with the future being even more uncertain. Homeowners and house buyers are anticipating what the housing market could bring in 2018. In this, we could focus on the potential options and find out what the experts think.

So, what is the current state of the housing market?

House prices have drastically risen over the last couple of months, especially due to growth in employment and a shortage of supply of properties in the market. Estate agents have been making efforts to bring in new properties. Housing agents have also been appealing to local owners to put their houses up for sale. Before this, house prices had slowed down sharply, catalyzed by the Brexit uncertainty, static wage growth and a reduction in the speed that mortgage rates are dropping.

This is the warning from Jeremy Leaf, an Estate agent, "the recent house price growth has been driven by a shortage of supply, including house building, historically low mortgage rates and relatively low unemployment instead of strong buyer demand."

Note the gap Looking at national levels, we notice house prices rose about 2.2.% between June and September. The drastic rise changed the average cost of a home to £210,982. Now the only inconsistency in the verdict is the London region. The city is the only place where housing prices fell over this time. These findings might be proof that the capital was the most inadequately performing region in the UK, for the first time in 12 years.

London still retains the top spot in the list of the most expensive places to buy properties in the UK. However, the gap between house price growth as recorded in different regions is gradually closing. For example, the rate of annual increase in the South of England has had a slight slow down, but the cost throughout the Midlands and the north-west region has constantly been growing.

Are millennials to blame?

Did you know that there has been a drastic reduction in the number of mortgage approvals? Having your, lease approved is not as easy nowadays, recording a nine-month drop of about 65,000 in June. Property surveyors are suggesting a significant decrease in the number of new buyer enquiries. James Pendleton, an Estate agent, noted that annual growth rate has continued to broadly shrink. He compared the drop in growth in the housing industry to a “tyre with a slow puncture, since mid last year.”

The millennia’s might be the ones to blame for the slow down of new buyer enquiries partly. According to the findings, millennia’s are holding off buying their first housing. A considerable number of people under 30 are still renting or living with their parents due to soaring house prices and comparatively low earnings.

So, what is the next step to take?

In the face of Brexit and political uncertainty the value of properties in all the British regions is likely to increase. Maybe over the coming year or little more years. According to a Countrywide precision, house prices might just rise even by a further 1.5% this year and another 25 in 2018. The 1.5% growth is much lower than we have seen in the previous years because the lack of supply could continue to incline house prices.

As buyers are opting to stay in their current homes, the house supply against demand graph remains low. The changes in stamp duty have also contributed to the decrease in the number of buy-to-let purchases. The rates of new house building are not expected to have arisen over the next two years, which is significant enough to catch up with the previous shortfalls.

The Brexit issue

The housing market and the broader economy highly depend on the eventual outcome of the ongoing Brexit negotiations. Already, the current uncertainty is putting the market at risk, with homeowners opting to put off moves until they are more guaranteed about the economy's future. Maybe once the future is a little more secure, the homeowners or potential buyers could feel more confident in moving.

Potential buyers and homeowners can follow the words from Matthew Poole, a Senior Mortgage Consultant at Eddison Wells. He said, "I'd imagine we'll see a similar trend as in 2017." With the lack of supply, he suggested that prices are unlikely to go lower as there may be a lot of competition among buyers. The buyers could be in a tight race for the available properties.

With the uncertainty in the market and the different directions that the housing sector is facing, it is advisable to be constantly cautious. Be on the lookout for news and updates, so that you can take advantage and make a move at the most convenient times.

Therefore, if you are considering moving shortly, take time to research on the best deals and housing conditions. Trust in your budget and the type of housing you can afford. You can also speak to an expert for further guidance.

Mortgage Advisers Eddison Wells – with locations in Brighton and across the UK - are able to advise on a wide range of financial products. Providing the highest quality service at the most affordable price is a prerequisite and a firm ethos. If you’re thinking of taking your first mortgage, call now on 0800 808 9981 - a member of their team will be willing to help, and provide advice based on your own circumstance.