Latest Halifax figures show property values continue to fall
Director of Benham and Reeves, Marc von Grundherr, commented:
“For the last two years, many buyers have been borrowing beyond their means to offer above the odds and beat other buyers to the punch in what has been an extremely competitive market.
But with increasing mortgage rates adding to the cost of living squeeze, they are no longer acting with the same degree of over-exuberance and this is dampening the house price highs seen throughout much of the pandemic.
However, what we’re currently seeing is an extremely over-inflated market retract, rather than collapse. So while there may still be a period of correction to come, the overarching expectation is that stability will return sooner, rather than later.”
Managing Director of HBB Solutions, Chris Hodgkinson, commented:
“It’s clear that the Bank of England’s aggressive approach to curb inflation via nine consecutive base rate hikes is now starting to impact the property market, with mortgage approvals starting to slide, bringing property values down in the process.
This reduction is due to the increasing cost of borrowing and with mortgage rates climbing, buyers are now finding that they can no longer overstretch financially to climb the ladder and are having to adjust their expectations accordingly.”
James Forrester, Managing Director of Barrows and Forrester, commented:
“As it stands, we’re witnessing a period of adjustment as buyers reassess their purchasing power and sellers come to terms with what their home can fetch in current market conditions.
For those hoping to sell, there remains a strong level of buyers within the market who are still willing to pay a good price. However, a level headed approach when valuing your home is key if you wish to attract them.”
Jason Ferrando, CEO of easyMoney commented:
“We're now seeing the meteoric rates of house price growth seen throughout the pandemic start to subside. But while some home sellers may see the cream cut from the top where the value of their home is concerned, they’re certainly not losing the whole pint of milk.
Of course, the silver lining to a cooling market is that many home movers will still be looking to sell and so it presents an abundance of opportunity for homebuyers and investors alike to grab a bargain.”
