Nationwide data showing house prices rose – Thoughts from the Industry
The latest Nationwide data showing house prices rose at much higher pace than expected at 1.2%. Here are some thoughts from the property industry.
Daniel Austin, CEO and co-founder at ASK Partners:
“We continue to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the remainder of the year going into 2025. The market certainly appears to be showing signs of resilience. The market is feeling buoyant following the Autumn Budget with £5bn promised for new homes and the government’s permanent establishment of the mortgage guarantee scheme, which supports lenders offering 95% loan-to-value mortgages. Increased supply should continue to support the market and level out values; a plus for first time buyers, who conversely will be hit by the new lower stamp duty thresholds.
“In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. Incentives announced in the budget to support the Build-to-Rent sector, including £3bn in housing guarantee schemes that provide lower-cost loans should entice developers. While private investors will be hit by Higher Rate for Additional Dwellings, SME housebuilders will benefit from the Affordable Homes Programme and funding to unlock stalled developments, all contributing to increased supply. Sustained house price growth, lower interest rates and dampened inflation alongside new initiatives to benefit developers, should continue to stimulate market growth. As a debt provider we will be pleased to see more favourable market conditions unlocking strong assets in good locations for well-capitalised borrowers.”
Nathan Emerson, CEO of Propertymark:
“It’s likely that as both the confidence and affordability of buyers increase due to the easing of inflation, this has spurred on activity in the market and as a result, we are starting to see health restored in the form of steady house price growth.
“What we are likely to witness now is a further spike in activity especially for buyers in England and Northern Ireland as some rush to complete before the upcoming Stamp Duty rises due to commence from April 2025.”
You May Also Enjoy
Interest rates matter, but asking price is still what sells a home
Three-bedroom homes dominate Britain’s quick-sale market
£3bn tenant deposit shake-up on the cards
Brexit housing market winners and losers
The Rental Market is Rebalancing
