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Nationwide HPI: “market shot out of the gates in January” – 13 estate agents and brokers share their views

In response to the Nationwide January HPI, published this morning,13 estate agents and brokers share their views below:

Lee Griffiths, Managing Director at Hinckley-based estate agents Saxon Paddock Estates & Homes: “The property market absolutely shot out of the gates in January. Prices have remained at record levels, partly thanks to the lack of housing stock, and there has been a marked increase in valuation enquiries. Demand has been as strong as ever, with most properties we list going under offer within a week. This often leaves numerous disappointed buyers still searching for their next home. Stock levels in the area do seem to be on the up, but there’s still huge pent-up demand so the supply and demand issue remains. I do not believe we’re going to see any kind of price drop in 2022, but I do believe that we’re going to see the market begin to stabilise. As stock levels increase, and interest rates rise, I feel the pricing curve will flatten.”

Andrew Montlake, Managing Director of the UK-wide mortgage broker, Coreco: “Though the property market smashed it in January, the rest of the year will likely see a cool-down in the rate of price growth due to inflation and rising interest rates. However, values are unlikely to fall as mortgage rates remain exceptionally low, people are keen to avoid renting and the ‘race for space’ continues apace. As ever, prices are also being propped up by a chronic lack of supply.”

Ross Boyd, founder of the always-on mortgage dashboard, Dashly.com: “The abject lack of stock and strong demand due to ongoing lifestyle changes as a result of the pandemic saw the strongest January for 17 years. There are a multiplicity of reasons why the property market is likely to cool down in 2022, specifically inflation and rising interest rates, but the shortage of homes available to buy will support prices.”

Andrew Simmonds, director at Bristol-based Parker’s Estate Agents: “While we have seen some quality properties come onto the market since Christmas, stock is still very limited and buyers are not yet coming out of their shells unless something really catches their fancy. 2022 seems like it will still provide consistent growth, with some areas faring better than others as ever, but it will be much more moderate growth than we have seen during the past twelve months due to rising interest rates, taxation and the increased cost of living. I am expecting to see many vendors sell and move to rented with a view to onward purchasing later in 2022 or 2023.”

Jamie Thompson of Manchester-based Jamie Thompson Mortgages“Around Manchester I’m seeing as many first-time buyers as there’s ever been, but they’re trying to buy as few properties as there seems to have ever been. This is probably because everyone above them on the ladder who might have been moving this year brought their moves forward to pre-September 2021 due to Rishi’s super stamp-duty slash. The stamp duty holiday has now driven prices to a level sadly beyond many first-time buyers. Another Government plan gone wrong.”

Rhys Schofield, Managing Director at Peak Mortgages and Protection“January was by far and away our busiest month ever, with demand for property and mortgages through the roof. The systemic lack of stock means house prices can only go one way. Until we build enough houses, which will never happen based on successive Governments’ track records, prices will always trend upwards in the long run.”

Scott Taylor-Barr of Shropshire-based Carl Summers Financial Services“Right now a lot of the potential buyers I speak to are deeply conflicted. They want to buy a home but they are reading a lot about rising interest rates, inflation at record highs, tax increases and soaring energy costs, and on top of that a potential Russian invasion of Ukraine.  It’s not surprising that people are approaching a big ticket purchase like a house with a little less of a gung-ho attitude in the current fraught climate.”

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