Are the brakes really being put on house prices?
The residential property market is showing further signs of slowing, as households face a squeeze on their finances, according to this article, writes Zah Azeem, Partner at Wimbledon based Chartered Surveyors Scrivener Tibbatts.
Halifax reported earlier this month that property prices increased last month at the slowest rate of growth since the start of the year. The average price of a property hit another record of £289,099, up 10.5% year-on-year.
Russell Galley, managing director at Halifax, said: “Despite the very real cost of living pressures some people are experiencing, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices.
“However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.”
Tom Bill, head of UK residential research at Knight Frank, commented: “House prices have begun their gradual return to earth as the cost of living squeeze tightens, mortgage lenders withdraw their cheapest products and the supply of homes increases as owners sense prices are peaking.
“The trigger for this much-needed rebalancing between supply and demand appears to have been the Bank of England raising the base rate to 1% and the grim language it used to describe the economic outlook.”
But while the brakes will be applied, the low rate of unemployment means the housing market “shouldn’t screech to a halt”, according to Bill, with Knight Frank expecting single digit growth by the end of this year.
Here in Wimbledon prices are certainly keeping their value. If you would like to discuss something related to a property valuation, please contact Zah direct via email at zah@scrivenertibbatts.co.uk or call 020 8947 7040.
