The latest release of the Halifax House Price Index (HPI) has sparked widespread discussion across the property sector, as analysts and industry professionals weigh in on what the figures mean for the UK housing market.
Nathan Emerson, CEO of Propertymark, comments:
“This is a glimmer of good news for consumers considering it has been reported that there are economic headwinds ahead of us soon, and this news proves that house prices are adapting to recent Stamp Duty changes despite other reports suggesting that housing activity has slowed due to these tax increases.
Lenders are adapting to market trends by offering more competitive products, however, with the average deposit needed to purchase a home now exceeding £60,000, more support is needed to make homeownership a realistic aspiration for more people. The UK Government and the devolved administrations must prioritise housebuilding to void the gap between supply and demand, which ultimately will help bring down house prices in the long-term, as well as the Bank of England reducing interest rates as soon as possible to further improve affordability.”
Jonathan Handford, Managing Director at national estate agent group Fine & Country, said:
“A significant uptick in house prices is not uncommon at this time of year. Potential buyers often take time out from work to shop around for homes, and this can increase competition for desirable listings.
Sellers should keep their expectations realistic, as this growth varies widely across the UK—Northern Ireland has seen growth of almost 10%, compared to parts of London where prices are barely rising at all.
The Bank of England is expected to cut interest rates to 4%, which could provide a shot in the arm for the property market and help more buyers access competitively priced mortgages.
Falling interest rates could spur demand and keep house prices on course for healthy growth. However, this must be tempered by the need to keep affordability intact. Strong wage growth will support this, and we are unlikely to see annual price growth surge beyond 3% in 2025.”
Tom Brown, Managing Director, Real Estate at Ingenious, said: “Today’s data underscores the resilience and appeal of the UK property sector. Despite elevated inflation and stubborn borrowing costs, we welcome the BoE’s recent rate cut as a hopeful first step in a much-needed easing cycle. There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”
Matt Thompson, head of sales at Chestertons, says: “Many house hunters feel that the property market now provides a window of opportunity as more properties are up for sale. Last month, some of our branches registered an evident uplift in the number of vendors wanting to sell which has motivated more buyers to resume their search and make an offer. With the Bank of England likely to cut interest rates today, we expect more buyers to proceed with their property search over the coming weeks.”
