New figures released today by the Office for National Statistics (ONS) show UK house prices rose by 3.7% in the 12 months to June, underlining the ongoing challenges faced by those trying to get a foot on the property ladder. Alongside continued rental growth, the data points to a housing market still struggling with affordability and accessibility — especially for first-time buyers.
Responding to the data, Chris Storey, Chief Commercial Officer at Atom Bank, warns that uncertainty around housing policy and persistent supply issues are compounding the pressure on aspiring homeowners.
He calls for both government action and industry innovation to ensure rising prices don’t shut the door on a new generation of buyers.
“The rumours about wholesale changes to the Stamp Duty regime – and potentially its complete replacement with a new form of property tax – have understandably caused some potential buyers to put their plans on hold.
Why push on with a deal today when holding out for a month or two could mean they save thousands?
Reform that makes life easier for aspiring buyers would be welcome, so long as it does not supercharge house price growth. The housing ladder only works if would-be homeowners can get onto it.
The upcoming Budget represents a great opportunity for the Government.
Housing production looks to be significantly down on the promised 1.5 million new homes during the course of this Parliament, and until we dramatically improve that production rate there will remain sharp upward pressure on prices.
In the meantime, it’s vital that lenders go further in supporting borrowers who are underserved by mainstream lenders. A broader choice of products with higher LTVs and a more forgiving attitude to credit blips will mean that rising house prices don’t kill off ownership dreams.”
