Getting latest data loading
Home / Blog / blog / UK Housing Market Overview – 23rd August

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

UK Housing Market Overview – 23rd August

UK Housing Market Overview


The UK housing market is posting a grim picture after rallying for five years straight on the back of eased monetary policies in the EU region.


House ownership survey 2017-18, by English Housing Survey, estimated that 14.8 million out of a total 27 million households ‘owned’ houses either directly or indirectly through mortgages. This leaves 12.2 million remaining households to the rented sector either private or social.


Surprisingly, private rented sector topped with highest prevalence of poor housing conditions at 25% followed by owner occupied and social rented sector at 19% and 13% respectively. This puts the aggregate ‘demand’ for better houses at 2.8 million with 1.7 million living in Category 1 hazardous homes.

‘Demand’ for accommodation has been high as the survey found 10% of the owners to have let out their house either partially or completely in the past one year. London and West-Midlands took the lead with one in 5 house owners agreeing to have done so.


While ‘Demand’ represents the minimum potential, actual demand remains subdued as noted by the Nationwide Building Society, the 7th largest cooperative financial institution. Its Housing Price Index (Nationwide HPI), not adjusted for inflation, is flattening with year on year change approaching zero.


The index is based on estimated price of a typical UK house which uses hedonic regression based on factors like location, neighborhood, property design, number of bedrooms and whether the property as new or old. The data is based on Nationwide’s own approved mortgages and the regression technique instead of simple averages helps reduce the effect of outlier transactions. While the ‘typical’ house is a purely hypothetical house, it represents the market more effectively than actual transactions.


It is worth noting that even though bet markets have estimated hard Brexit possibility at around 40% the approved mortgages based housing price index is far from a crash as was seen in the great financial crisis in 2018. Even though BoE chairman seemed to compare hard Brexit as major catastrophe, the one of sending UK into recession taking out large businesses, Nationwide’s approved mortgages so far do not appear to agree.


The effect on house builders is nevertheless significant. Persimmon’s H1 2019 results disappointed investors as it declared a decline of 5.6% in revenues. With net profit’s down by 2%, it is worth noting that Persimmon is a large British house-building company with assets valued at ₤4.6b and market capitalization of ₤5.9b. Other smaller house builders not necessarily listed could be in deeper troubles creating stressed assets for the lending banks.


Pillar 3 Quarterly filings, with the UK Prudential Regulatory Authority(PRA), that helps in monitoring adequacy of provisions against bank’s risky assets is worth taking a look at.


RBS’s NatWest Holding Group, the holding entity of retail businesses in the UK has Tier1 capital at ₤25b of which ₤21b is through common equity. Tier 1 capital stands at 21% whereas the requirement set by PRA is at 11.6%of its total risk weighted assets (RWA). RWA for the group as of June 2019 was ₤140.5b with contribution of ₤120b from credit risk alone and around ₤20m from operational risk with significant scope of improvement in the later.


With ring-fencing of retail and investment banking businesses becoming a statutory requirement in 2019, the retail banks are expected to remain more stable. The housing segment though worrisome is perhaps not a reason to panic.

« Back to Category

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Comments are closed.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

4.81 Average

156 Reviews


I have found Accendo staff very helpful,,and informed. I have traded with you for some years now and have no regrets. Keep up the good work!

Posted 1 year ago

Shaun D

since signing up for Accendo I have had two traders, Mark and Sam. I have found both of these to be very informative about how CFD's work and they have made it very easy for me. Since working with Sam (last four months) my trading knowledge has improved and I can make more informative decisions about which Company's to invest with. Keep up the good work Sam.

Posted 1 year ago


I am very happy with the service I get from Accendo Markets and in particular Amrit Panesar. He is very professional and pleasant to speak to and this counts for a lot.

Posted 1 year ago

Shreekant P

Its a good site for dealing stocks worldwide and having good staff.

Posted 1 year ago

Nick W

Krishan Appiah is one of the most dedicated / informative broker I have ever had.

Posted 1 year ago

Thomas I

Since I have been trading with Accendo Markets I have experienced much greater success than has been my experience with other trading companies mainly due to the help given by, what I consider to be my terminal with the trading floor, Mark, who has been most helpful in reminding me of the progress of my positions throughout the day and keeping me in touch with those positions so that I can more easily make successful trades when appropriate instead of missing out on opportunities through lack of attention. He draws my attention to the situations and enables me to make profitable trades. I am very happy with the situation at the moment and am enjoying the experience. Thomas Irving.

Posted 1 year ago

Kartik A

Accendo markets keep me connected with the market and its very well followed by Mr. Krishan Appiah ,which helps me to take certain decision on time.

Posted 1 year ago

Peter p

I have been trading with Accendo Markets and James Abbott my account manager for coming on 5 years now, James Abbott the senior trader of Accendo Markets provides me with up to minute information when I need it and find him very easy and professional to deal with. Whenever I need to trade or am not sure about anything James is always their to help with any queries I may have. The Accendo Platform I find very easy to use and navigate although it has been slightly changed over the years but definitely for the better. Personal when I do trade 90% of the time, I rather telephone call to place my trade dealings and if James is not there to take my call I find others at Accendo like Sam, Lee take my trades and are. All in all everyone at Accendo Markets are amazing to deal with and my relationship with Accendo is just as I like it. Peter Petrou

Posted 2 years ago

Mrs. J

"Our Trader, Aymen Azizi, has been nothing but attentive to our every need throughout our long relationship with him. No issue is too small, full explanations on all our questions."

Posted 2 years ago

Brian R

I have been with Accendo for a long time now, ten or twelve year's, probably more . As I told Sam (my trader) I thought that CFDs were better than sex . I stopped trading for a few years and only started back about a couple of months ago. But it is as if I had never been gone , so to speak. Sam has helped me every step of the way, at my age one forgets things. I have only praise for Accendo and as far as I am concerned the platform is the best . Now I am back trading at 71 years of age, I might even try sex again. Brian Robertson.

Posted 2 years ago

Jim W

I understand how to make a profit with CFDs. I am restricted by the range of companies I have knowledge of. Although, I am not sure that is a big problem. Tom Robertson is a very fine man.

Posted 2 years ago

Rebekah S

Well, I would not be trading without the help of my trader, Sam Alnakkash. He provided a really great overview of Accendo Markets, an insight into trading in general and how to get started in trading online. His advice, support and training has been fantastic all along the way, enabling me to start trading earlier than I would have done had I not had the support. He has also been very adept at understanding me as a client in order to help me achieve my trading goals. I still have a lot to learn and hope I will get there.

Posted 2 years ago

Nick z

I like the updates on shares I trade. Updates from Bloomberg and Reuters plus industry updates and breaking news. I've had Matt Grice and James Abbott and found both to be excellent. I would like to continue a personal service with James. He understands how and which stocks I trade.

Posted 2 years ago

Steve O

Excellent, knowledgable broker interaction and communication, coupled with very good research and analysis.

Posted 2 years ago

William P

Being new to direct trading I needed help and was given all the time and advice that I needed to feel fully able to make decisions on what I wanted to invest in. I asked for and got exactly the type of info I required provided by Tom Cook, who I would recommend to anyone looking for help.

Posted 2 years ago

Mr. W

I have been dealing with accendo for the past 8 years my broker Amrit I find him very helpful when he is there lol and had many offers to change but will not do it Bill Roberts

Posted 2 years ago

Zoran N

Very good all round service! Timely market information. (charts + trends coverage ) On the ball accounts managers ,quickly available and alert . Part of my success owed to my personal manager Mr Sam Springet , than you.

Posted 2 years ago

Mr Brian C

Easy to deal with.....

Posted 2 years ago

Muhammed S

Accendo markets are great for trading cfds and their research is second to none! Aymen manages my account is extremely helpful and always keeps me updated on market info. Thanks again

Posted 2 years ago

Mr Buta B

Always available, whenever I call I get straight through to someone that can and will help. The staff are very knowledgeable, helpful and easy to talk to.

Posted 2 years ago

Stephen B

Aymen Azizi keeps an eye on what is happening in the market and informs me with timely relevancy, email call, and txt.

Posted 2 years ago