The Nationwide House Price Index released this morning has revealed that house prices grew by 0.2% month on month in June.
In response to the latest data, industry experts have shared their thoughts with IFA Magazine.
Matt Thompson, head of sales at Chestertons, says: “House hunters have been feeling uncertain amid political and financial developments but with change on its way, have become more confident to resume or finalise their property search. As a result, June concluded with a heightened level of buyer activity.”
Iain McKenzie, CEO of The Guild of Property Professionals, comments: “This is the last litmus test on the state of the property market before the General Election and it is fair to say that while challenges remain, stability has returned to house prices in recent months. A modest rise in June follows the trend of steady price growth we have seen since the start of the year.
“While some may argue prices are stagnating, affordability concerns still loom for many Brits and there is a delicate balance to appease buyers and sellers alike.
“The regional picture is more mixed and we are seeing a greater adjustment in house prices happening in the South, where prices in many areas have been inflated for years.
“Meanwhile, regions in the North of England have seen higher levels of demand, creating a market that favours sellers.
“We would like to see first-time buyers being prioritised in the coming months, regardless of which party forms the next government. While house price growth is welcome news for sellers, it undeniably makes it harder for those still saving for a deposit to get on the property ladder.
“A renewed push to ramp up the rate of homebuilding would be a good place to start, particularly for properties that are considered more affordable.
“There is also the possibility that we may see a new help-to-buy scheme rolled out in the near future, which would go a long way towards encouraging potential buyers to get saving.”
Nicholas Finn, Managing Director of Garrington Property Finders, comments: “Whether it’s pre-election uncertainty or summer sluggishness, the effect is much the same – large parts of the property market are in a holding pattern.
“Housing market activity remains largely flat according to the Nationwide, and many estate agents report that enquiries cooled further in June as some prospective buyers opted to put things on hold until the make-up of the next Government is known.
“But the Nationwide’s analysis does reveal one section of the market where activity is buzzing – purchases by cash buyers are up by 5% compared to their pre-pandemic level. While cash is still king, purchases by buyers who need a mortgage are down by almost a quarter, reflecting the high cost of borrowing and the squeeze on what many people can afford.
“While the summer holidays are traditionally a sluggish time for sales, this year’s back to school bounce is likely to come earlier and be stronger than in recent years. With the first cuts to interest rates now potentially just a month away, cheaper mortgages coupled with the return of some political stability could make business very brisk in August.
“For now, the pre-election hiatus has mostly favoured buyers. Those pressing on with their plans to move are finding plenty of supply, less competition from other buyers and many sellers willing to discuss a price reduction in return for the certainty of a sale.
“But this delicate equilibrium is unlikely to last. With both the economy and consumer confidence growing again and thousands of would-be buyers primed and ready to jump back into the market as mortgages become cheaper, the stage is set for a very busy Autumn.”
