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House prices are still up year-on-year, latest government report shows

Published On: November 21, 2022 at 3:12 pm


Categories: Property News

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Average house prices in the UK have increased 9.5% annually, according to the latest government report.

The September UK House Price Index shows the average price of a property in the UK was £294,559. There was a monthly change of 0.0%.

Property industry responses to the UK House Price Index

Marc von Grundherr, Director of Benham and Reeves, comments: “The property market has continued to weather the storm of late and while we may have seen a reduction in buyer demand due to higher mortgage rates, we’re simply not seeing any downward pressure applied to sold prices, despite a static rate of growth on a monthly basis. 

“This is largely due to the fact that buyers have been keen to transact at pace in order to secure the rates currently on offer, before they climb even higher. In doing so, they’ve helped to maintain a consistent level of activity in the process which has kept the market afloat.”

James Forrester, Managing Director of Barrows and Forrester, comments: “It’s incredibly hard to gauge the true health of the UK property market at present, with increasing mortgage rates leading to a period of turmoil, followed by a renewed level of certainty as a result of a government refresh.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “All current indicators suggest the market is starting to freeze over with homebuyers giving the idea of homeownership the cold shoulder following a sizeable uplift in the cost of borrowing. 

“This declining level of buyer demand is yet to cause house prices to actually fall, but the tide is starting to turn, and with the market now slowing right down until spring we can expect property values to follow suit sooner, rather than later.”

Latest government data reveals average UK house price

Published On: October 20, 2022 at 9:26 am


Categories: Property News

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The latest government UK House Price Index shows that the average price of a property was £295,903 in August 2022.

The report also states house prices increased 13.6% year-on-year and 0.9% month-on-month.

Property industry reactions to latest house price data

Iain Crawford, CEO of Alliance Fund, comments: “Despite the government’s best efforts, we are yet to see house prices take a hit and the property market remains predictably resilient despite the turbulence of the wider economic landscape. 

“However, although Jeremy Hunt has pulled an almost complete three sixty manoeuvre where tax cuts are concerned, the irresponsible management of the UK economy in recent weeks will understandably unsettle the nation’s homebuyers. 

“Many are already facing a notable hike to the monthly cost of their mortgage and while the increasing cost of borrowing is now likely to plateau, we can expect to see some form of house price correction. That said, this will most probably come in the form of a reduction in the rate of growth rather than a downward spiral in values themselves.”

Marc von Grundherr, Director of Benham and Reeves, comments: “If history has taught us anything, it’s that it will take far more than a bumbling bunch of buffoons mismanaging the economy from Westminster to topple the UK property market. 

“House prices continue to climb and this will remain the case as long as the buyer demand balance remains tipped firmly in favour of home sellers. 

“Mortgage rates also remain fairly favourable at present and so we simply won’t see a house price dip while this remains the case. However, the increasing cost of borrowing may curb the enthusiasm of homebuyers when it comes to their ferocity during the negotiations stage and so sellers may no longer see their property achieve above and beyond their asking price expectations, as has largely been the case during the pandemic.”

James Forrester, Managing Director of Barrows and Forrester, comments: “While the UK government may be a laughing stock, the UK property market is far from it and continues to move forward at pace despite the chaos that has unfolded across the wider economy. 

“A commitment to cutting stamp duty will certainly act as the cherry on the cake for many homebuyers, but it’s their continued ability to borrow in order to buy that will keep the cogs of the property market turning. 

“As it stands, they remain more than able, with the majority of lenders still offering a great level of products at what remain favourable rates. With stability now returning to the gilt markets, we can expect the mortgage sector to level out after what has been a rough few weeks and this will ensure the market remains in good health over the coming months.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “It’s not just the nation that is facing a tough few months ahead with potential energy blackouts, we expect to see the property market follow suit as a shambolic government performance leaves its mark where house price growth is concerned. 

“While the market remains unfazed at present, it’s important to note that these figures are reported on a lag of a few months and there’s no doubt that the increasing cost of borrowing will have dampened buyer activity, which in turn will see house prices dip before the year is out.”

Government reports continued UK house price growth

Published On: May 18, 2022 at 3:28 pm


Categories: Property News

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The House Price Index for March 2022 has been published by the Government, revealing the latest house price changes for England, Scotland, Wales, and Northern Ireland.

The report states that the March data shows:

  • On average, house prices have risen 0.3% since February 2022
  • There has been an annual price rise of 9.8%, which makes the average property in the UK valued at £278,436

James Forrester, Managing Director of Barrows and Forrester, comments: “The economy continues to wobble against a backdrop of rising inflation and the cost of living crisis and so the old adage of ‘what goes up must come down’ may certainly be on the minds of many where the UK property market is concerned. 

“So far, this worry is yet to be realised and the market continues to move forward at speed, seemingly impervious to the influence of the wider economic landscape.”

Marc von Grundherr, Director of Benham and Reeves, comments: “The winds of change are certainly starting to blow and while this building economic headwind is yet to derail the phenomenal rates of house price growth being seen across the UK on an annual basis, it certainly seems as though dark clouds are gathering on the horizon with a reduction in pace already materialising on a monthly basis.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “The property market remains awash with homebuyers keen to climb the property ladder and with stock levels remaining insufficient, this heightened demand is continuing to drive house prices upwards on an annual basis. 

“However, with interest rates rising and inflation at a 40 year high, mutterings of a looming recession could soon reverse the market conditions seen in recent years and we’re already starting to see a slowdown on a month to month basis. 

“Should this come to fruition, many sellers may find it a struggle to secure a buyer and for a price they are happy with.” 

Rightmove reports ‘best ever spring sellers’ market’ for the UK

Rightmove has reported a new record for average house prices, as it sees the ‘best ever spring sellers’ market’.

The average house price in the UK was £354,564 in March 2022.

James Forrester, Managing Director of Barrows and Forrester, comments: “Since early 2020, an unrelenting level of homebuyer demand has fuelled a property market boom that shows no signs of slowing some two years down the line.

“Such sustained market conditions are quite phenomenal and as cliche as it sounds, there really never has been a better time to sell your house. 

“To say homes are selling like hotcakes would be an understatement and with multiple buyers battling it out for every last scrap of property stock, sellers are achieving above and beyond their original price expectations.”

Marc von Grundherr, Director of Benham and Reeves, comments: “As a nation, we’ve endured a prolonged period of economic instability due to the pandemic and yet more dark clouds are gathering due to the cost of living crisis. But despite this the UK property market remains a powerhouse of defiance, demonstrated by the fact that every region of the nation has reached record price highs in unison. 

“Although London continues to trail where this asking price performance is concerned, we’ve already seen concrete signs that the market is starting to turn in 2022, putting a sluggish pandemic performance firmly behind us.

“It will, of course, take some time before this starts to filter through and bolster home seller confidence within the capital, but when it does, it won’t be long before asking price expectations start to climb considerably. So while it very much remains a sellers’ market across the board, now is the time to buy in London as property prices are only heading one way for the remainder of the year, at the very least.” 

Geoff Garrett, Director of Henry Dannell, comments: “There’s no denying that the property market has performed impressively and with the cost of borrowing remaining favourable at present and buyer demand levels unlikely to subside, the short-term outlook remains positive. 

“However, both buyers and sellers would be well advised to make hay while the sun is shining, as growing economic headwinds are likely to take their toll further down the line. 

“While we don’t expect to see market activity evaporate completely, the growing cost of living will be a significant factor in the months to come and as household finances are stretched, it’s likely that prospective buyers will ease off on the sums they’re willing to offer. As a result, sellers will need to realign themselves with these changing market conditions and this will cause the rate of house price growth to cool.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “The market is moving at an incredibly fast pace and this certainly favours the nation’s home sellers who are spoilt for choice when it comes to the interest shown in their property. 

“Despite these favourable conditions they are still advised to act with a level head and avoid getting swept up by this cyclone of market activity.

“The highest offer isn’t always the best option and it’s important to consider a buyer’s position within the market, not just the money they’re willing to pay. Failing to do so can see a sale collapse and unnecessary additional costs incurred.” 

Christina Melling, CEO of Stipendium, comments: “What we’re currently seeing is a feeding frenzy from second and third rung buyers and it’s this segment of the market that is driving the unsustainable levels of house price growth seen in recent months.

“Unfortunately, it’s the nation’s first-time buyers who are paying the price and those looking to take that first step are now paying £2,000 more for the pleasure compared to just one month ago. While this may not sound significant to those with the financial foundation of an existing property to fund their onward purchase, it’s yet another brick in an already substantial financial wall that’s blocking many from realising their dreams of homeownership.”

Government releases latest house price data for February 2022

The Government’s UK House Price Index shows that average house prices increased 10.9% in the year to February 2022. The average price of a UK property in February was £276,755.

James Forrester, Managing Director of Barrows and Forrester, comments: “To say we’ve seen a fast start to the year would be somewhat of an understatement where current property market performance is concerned.

“Despite the wider narrative of financial turmoil that is impacting many households, we’ve seen an unrelenting level of homebuyers continue to enter the market in search of what is likely to be the most expensive purchase they will make in their lifetime.

“As a result, we’re seeing homes go under offer at an extremely quick pace, within days of listing them online in many cases, as buyers tussle over what limited stock there is available.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “An incredibly competitive market is great for those looking to sell, but for homebuyers entering the fray it can be a stressful and expensive endeavour.

“Not only are they already facing a far higher cost when it comes to climbing the ladder, but pickings are slim in terms of the stock available.

“This not only makes it harder to find their ideal home, but when they do, many are being beaten to the punch, outbid during the offers stage and even gazumped when they think they have finally secured a property.”

Christina Melling, CEO of Stipendium, comments: “The current property market boom is being widely touted as a key indicator of economic success against an otherwise gloomy pandemic backdrop. But while those lucky enough to already own a home may agree, it’s unlikely this sentiment is shared by those struggling to get a foot on the ladder.

“The average first-time buyer is now over £21,000 worse off than just a year ago having seen the value of a first home increase by 10.1%.

“While the cost of borrowing may remain favourable, the initial financial hurdle of a mortgage deposit is simply too much for many to overcome. With the cost of living also climbing, those previously struggling to save will no doubt find the task almost impossible going forward.”

Lee Martin, Head of UK for new-build specialists Unlatch, comments: “Demand for new homes has only grown stronger in 2022 and the sector is certainly playing a pivotal role where market performance is concerned. This is evident by the fact that new-build house prices are climbing at more than double the rate of the existing market and so it’s fair to say the sector is the engine room driving current rates of house price appreciation.

“But despite this strong performance, it’s also fair to say that the sector is helping beleaguered first-time buyers by enabling them to reduce the sizeable financial barrier of a mortgage deposit by utilising the Help to Buy scheme.

“So while the Government has largely failed in its ambitions to build more homes, the nation’s housebuilders have taken up the mantle to keep Britain building, delivering housing stock that is sorely needed at all levels of the market.”

Geoff Garrett, Director of Henry Dannell, comments: “The market has continued to excel despite what is a very delicate economic landscape and while the cost of borrowing has remained fairly favourable, those currently looking to buy should tread very cautiously with regard to over borrowing.

“It remains to be seen as to whether the cost of a mortgage will climb substantially this year, but with the wider cost of living also putting a squeeze on household finances, those borrowing well beyond their means may fall into financial difficulty further down the line.”

Jonathan Samuels, CEO of Octane Capital, comments: “Mortgage rates have already climbed by one percent so far this year and they are only going to go in one direction.

“So while many homebuyers may find that the cost of borrowing remains fairly affordable at present, they can expect this cost to increase over the coming months.

“While this won’t stall the market completely, it will certainly dampen market activity and it’s only a matter of time before this impacts house prices.”

Marc von Grundherr, Director of Benham and Reeves, comments: “While the London market continues to trail the house price pack where annual rates of appreciation are concerned, February’s explosive monthly increase provides the first signs of how quickly the tide is starting to turn.

“We’ve seen a sharp uptick in market activity on the ground for some months, driven by the return of both domestic professionals and foreign buyers, and this is now starting to translate into positive market momentum.

“Although the wider UK market may be susceptible to higher mortgage rates and the increasing cost of living, this is less likely to faze buyers within the capital. So we expect to see a complete role reversal with regard to property value performance as the year goes on.”

Property industry reacts to latest Nationwide House Price Index

The latest House Price Index from Nationwide reports an annual increase of 12.6% in February. This is up from 11.2% in January.

Month-on-month, prices are up 1.7%, with the average house price exceeding £260,000.

Michael Bruce, CEO and Founder of Boomin, comments: “We’re riding a wave of house price growth at present, driven by a market that is experiencing very high demand for homes that just simply aren’t available. It’s only natural that this wave will start to lose ferocity at some point, but there’s certainly no signs of that happening just yet, despite a squeeze on the cost of living and a double-digit increase in interest rates.”

Jonathan Samuels, CEO of Octane Capital, comments: “Although two consecutive increases in interest rates is always going to be food for thought for the nation’s home buyers, what we’re currently seeing is consideration, not concern.

“While some may have marginally adjusted the sums they are committing to borrowing, the sheer volume of new buyers entering the market remains very high and this is enough to keep house prices buoyant for some time to come.”

Marc von Grundherr, Director of Benham and Reeves, comments: “There’s arguably never been a better time to be a homeowner as, despite all that’s been thrown at it, the UK property market continues to go from strength to strength. This performance really is quite alarming when you consider the wider economic turmoil that we’ve faced for some years now and it proves that there really is no safer investment than bricks and mortar.

“Even across London where market conditions have remained far more muted, values have continued to climb and the capital’s property market is now poised to enjoy an accelerated rate of growth over the coming year.”

Chris Hodgkinson, Managing Director of HBB Solutions, comments: “Although top line market statistics paint a very positive picture, it’s important to remember that the UK property market is extremely fragmented in its nature. The key to a successful sale is understanding your own local market landscape, the demand for homes and pricing in accordance with these factors. 

“Failure to do so and pricing too high will only see your home suffer from a severe lack of interest, a protracted period of time spent on the market and a higher chance of turbulence further down the transaction timeline.” 

James Forrester, Managing Director of Barrows and Forrester, comments: “Yet another increase in property values demonstrates the current strength of the UK property market and the deafening silence coming from the usual band of property market naysayers is no better testament to this overall health. 

“Despite many prophesying the end of the market due to Brexit, the pandemic and the end of the stamp duty holiday, amongst other things, we’re yet to see a chink appear in the armour of what is perhaps the most defiant and dependable property market in the world.”