UK House Price Index from Nationwide -Thoughts from the Industry

Commenting on the latest UK House Price Index from Nationwide showing property prices have risen by 4.1%, here are some thoughts from the Industry.

Daniel Austin, CEO and co-founder at ASK Partners:

“We are continuing to see a rise in house prices, which is hopefully the sign of an upward trend developing going into 2025. The market certainly appears to be showing signs of resilience. We expect to see an active period for the market as buyers look to get ahead of changes in stamp duty thresholds from April that will have an adverse effect on affordability.

“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. The exodus of buy-to-let mortgage holders following last year’s Budget had caused prices to rise in the UK rental market due to a lack of supply. We have already seen a rise in mortgage approval rates back to levels previously seen before the 2022 mini-Budget. The impact on the rental market should entice developers of schemes such as co-living and build-to-rent to fulfil the lack of supply.

“As a debt provider, we hope to support well-capitalised borrowers who understand their product and are looking at the best sites in prime locations with potential to add to their asset value. Following this strategy, we aim to bolster developers’ initiatives with the flexible underwriting approach that is necessary for navigating a changing market. This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.”

 

Nathan Emerson, CEO of Propertymark:
“Moving into 2025, it’s positive to see that house prices and mortgage lending remain resilient despite continued affordability pressures. Currently, it’s likely a lot of movement in the market is due to people wanting to push through with their purchases and sales before the Stamp Duty rises in England and Northern Ireland in April. However, one aspect helping maintain momentum in the marketplace is the fact that mortgage rates and financial pressures are slowly improving for those looking to make a move.
“Propertymark member agents have reported that new buyers registered per branch have on average increased year on year by 44%. Therefore, with demand rising, now is potentially a great time to consider putting your house on the market and taking advantage of current market conditions.”

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