Response to latest Nationwide House Price Index
Comment on latest Nationwide data showing a 3.5% increase in house prices from the Industry.
Nathan Emerson, CEO at Propertymark:
“It is reassuring to witness consistent house price growth and a strong appetite as people continue to approach the homebuying and selling process, especially when the UK economy continues to adapt to both domestic and international events.
“With the rate of inflation still very much in sharp focus, it will be interesting to see what direction of travel the Bank of England may take regarding base rates when they meet again next week. Ultimately it would be welcome news for consumers should there be any further base rates cuts, however the Monetary Policy Committee will likely be approaching any decision with extreme caution, especially considering many economists are predicting inflation to further rise.”
Chief Sales Office for Foxtons, Jean Jameson:
“The market continues to make positive strides forward, with the rate of house price growth accelerating on both a monthly and annual basis.
This momentum has only intensified following a renewed wave of buyer and seller activity as the stamp duty dust has settled, strengthening what has so far been a very busy first half of the year for the UK property market.
Whilst the expectation is that the Bank of England will hold the base rate at 4.25% this month, a heightened degree of mortgage provider competition has driven down rates in recent months and so we can expect buyer appetites to remain strong.”
Director of Benham and Reeves, Marc von Grundherr:
“Whilst we saw the market take a momentary pause for breath following the stamp duty deadline, it’s clear that it’s back to business as usual, with the monthly rate of decline seen last month reversing and the annual rate of growth also accelerating in May.
This was always to be expected and, so far, predictions of a positive year for the property market are ringing true, as we’re seeing consistently strong growth in mortgage approval volumes, more deals done and a strengthening in property values.”
CEO of Yopa, Verona Frankish:
“Not only has the market benefited from a degree of post-stamp duty deadline stability, but the reduction in the base rate seen at the start of May has also helped to drive buyer activity, as those looking to make their move continue to benefit from improving affordability where mortgage rates are concerned.
Whilst the general expectation is that the base rate will be held this month, this is unlikely to deter the nation’s homebuyers, who remain keen to transact despite interest rates sitting higher than they may have become accustomed to in recent years.”
Daniel Austin, CEO and co-founder at ASK Partners:
“Despite a rise, we believe that growth is likely to face pressure and remain steady, as higher borrowing costs start to affect buyers, despite the market’s continued resilience. Investors and developers in the residential sector remain motivated by the supply demand imbalance and under the Labour government, we think there will be more projects that get off the ground. We are seeing a greater variety of housing options, such as co-living schemes, coming to market which fulfil the growing requirements of younger professional buyers. If prices flatten and interest rates start to fall, we will see more first-time buyers able to step onto the property ladder.”
Tom Brown, Managing Director, Real Estate at Ingenious:
“Today’s data shows that the resilience and appeal of the UK property sector persist. Though we have seen higher inflation and sticky borrowing rates, we welcome the BoE’s recent rate cut and what will hopefully be the start of the much needed falling rate cycle.
“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
“At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”
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