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Reaction to latest news of house price rises

Twelfth consecutive monthly increase and another double-digit rate of house price growth despite economic uncertainty.

The latest figures from Nationwide Building Society's House Price Index show that house prices increased for the twelfth consecutive month in July, up a further 11% year on year.

Here's the reaction from the property experts.

Iain McKenzie, CEO of The Guild of Property Professionals, says: “While house prices continue to defy gravity, the monthly growth figures are starting to level out."

“Demand for properties has dramatically outweighed supply since 2020 and that has pushed prices to record levels."

“Over the past month the number of buyer enquiries has started to subside, and we are seeing a more balanced sales market that could mean we will see house price growth cool."

"While homeowners have seen the value of their property grow substantially, increasing financial pressure from cost-of-living inflation has many hesitant about upscaling and some potential movers are now deciding to stay put."

“When people become hesitant about moving, or their budgets are squeezed too tight and are unable to afford the right home, we could see transactions begin to fall."

“It is unlikely we will see a drop in prices anytime soon. Around half of buyers move because their living situation changes and they are compelled to move to a new property - and so long as this demand remains buoyant, so too will house prices.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“You’d have thought that having gorged themselves on a feast of mortgage affordability and stamp duty reductions during the pandemic, the appetite of the nation’s homebuyers would be dwindling."

"This clearly isn’t the case and even a string of consecutive interest rate hikes are yet to taint their taste buds as they continue to pile their plates high - pushing house prices to record highs in the process."

"With the bricks and mortar buffet on offer remaining understocked with regard to the level of homes available, we can expect property prices to remain robust even against an uncertain economic backdrop.”

James Forrester, Managing Director of Barrows and Forrester, commented:

“A twelfth consecutive monthly increase and yet another double-digit rate of house price growth is quite remarkable in itself, but against the current backdrop of economic uncertainty it really does demonstrate the resilience of UK bricks and mortar."

"Market momentum remains unwavered, having weathered a prolonged period of Brexit uncertainty, a global pandemic, increasing inflation and the most incompetent prime minister in living memory."

"All things considered, it seems as though nothing short of an apocalypse can bring the property market to its knees.”

Director of Henry Dannell, Geoff Garrett, commented:

“A combination of rising mortgage rates, inflation and the increased cost of living have already started to cool the property market where buyer appetites in the form of mortgage approvals are concerned."

"Although this is yet to filter through to topline house price growth, it's inevitable that these headwinds will eventually impact the price buyers are willing to pay.”

Managing Director of HBB Solutions, Chris Hodgkinson, commented:

“While house prices remain sky high, home sellers would be well advised to fasten their seatbelts as we’re likely to witness a period of heightened turbulence before the year is out."

"Buyer demand levels are already starting to wane and when the well runs dry, home sellers will have to adjust their asking price expectations in order to secure a sale, as a perfect storm of increasing mortgage costs, record inflation levels and the steep cost of living all put pressure on the UK property market.”

 

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