Property values climb 15.5% - Industry reaction
Property values climb 15.5% - Industry reaction
Property industry reaction to the latest UK House Price Index
The latest index shows that house prices climbed by 15.5% annually in July, up by 2% on a monthly basis alone.
Director of Benham and Reeves, Marc von Grundherr, commented:
“The extreme resilience demonstrated by the property market so far this year continues to shine through the doom and gloom of the wider economic landscape, with the latest figures revealing yet another remarkable rate of growth both on a monthly and annual basis.
While London continues to trail the rest of the UK, it’s fair to say that the capital is very much moving through the gears, compared to a wider market that is already travelling at top speed.
With confidence and momentum now returning to the London market, it’s only a matter of time before it takes poll position, bypassing a wider regional market that is likely to run low on steam sooner, rather than later.”
James Forrester, Managing Director of Barrows and Forrester, commented:
“With the nation in mourning over the death of our longest reigning monarch, it’s fair to say that an increase in bricks and mortar value is probably the last thing on the mind of the nation’s homeowners at present.
But while we find ourselves in a week-long limbo until the state funeral next week, it’s the appointment of our new prime minister that is due to have a more significant influence on the housing market going forward.
With the cost of living crisis putting immense pressure on our household finances, failure to act is likely to see the huge levels of market momentum built since the start of the pandemic start to dissipate over the coming months.”
Founding Director of Revolution Brokers, Almas Uddin, commented:
“While homebuyers have been handed a momentary reprieve by the Bank of England, it's almost certain that we will see yet another increase in interest rates next week.
Apart from the cost of our energy bills, mortgage costs have seen the second largest annual increase of all household outgoings and this cost is only going to increase further as lenders react to another hike to the base rate.
Of course, it’s important to note that they remain relatively low when compared to historic peaks and we are yet to see any decline in house prices as it stands. However, this increasing cost will put further strain on our household finances at a time when they are already stretched to breaking point.
As a result, we can expect those buyers entering the market with the help of a mortgage to do so in a far more conservative manner than they have been doing in the last few years. The result of this heightened caution is likely to be a slow in the high rates of house price growth seen since the pandemic.”
Managing Director of HBB Solutions, Chris Hodgkinson, commented:
“The increasing cost of borrowing, coupled with the spiralling cost of running our homes, is already starting to dampen property market activity. So while top line house prices remain robust, it’s only a matter of time before this dwindling market sentiment starts to show and we see a decline in the rate of house price growth.
Those currently considering a sale are best advised to do so quickly, as sitting tight until next year could see them achieve a lower price for their home compared to current market conditions.”
Lee Martin, Head of UK for new-build specialists, Unlatch, says:
“Although the market as a whole has continued to defy expectation and post a very strong house price performance, it’s the nation’s new-build sector that is driving this phenomenal rate of growth, with an annual increase exceeding twenty per cent.
This undoubtedly due to a realisation by homeowners that while the average new-build may come at a higher initial cost, the benefits of buying new, such as the far superior energy efficiency, are well worth the investment in what is a very tough time where the cost of living is concerned.”
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