Simon Gerrard Talks: “Fall in House Price Growth Last Quarter”
Simon Gerrard, Managing Director of Martyn Gerrard estate agents and past-president of the National Association of Estate Agents (NAEA Propertymark), comments:
“Zoopla’s House Price Index, which today reported a fall in house prices at the back end of last year, confirms we’re still feeling the ripples of September’s mini-Budget and the wider economic pressures. I don’t think demand has necessarily disappeared, as we have had a busier than expected return after Christmas. However, some people are choosing to remain patient, hold steady, and wait to see if there are any further changes to interest rates or whether the wider economy improves in the near future. However, this dip in demand that is likely behind the price drop should only be temporary, and I am hopeful for a return to growth.
Nonetheless, there are still plenty of people actively looking to buy right now, especially in more affluent areas of the country, such as North London. The real issue though is the lack of supply in the market, which has probably prevented an even sharper fall in prices than the moderate drop being reported. There simply aren’t enough properties coming onto the market, nor is new stock being built at the rate we need. The question every politician should be asking is where are my children going to live? Although, truth be told, I think this government has given up on housing for young people. Moreover, those that can’t afford to buy are also now having affordability problems with renting, as the government has killed the buy to let market. The government needs to realise that increasing the tax burden on landlords has ultimately hit the pockets of tenants too!
The issues around supply are far from being resolved as the Government continues to avoid confronting the ‘NIMBYs’ who oppose badly needed housing developments near them, and local councils continue resist developers’ attempts to expand existing stock. Authorities and those opposing new development seem to be wilfully ignoring a very real and growing problem – we have a growing population, a shortage of housing stock, and a widening gap between the two. The country, and the housing market, needs strong leadership and this starts with enacting the planning reform urgently required.”
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