There’s been some positive news on today’s Nationwide House Price Index who state that UK house prices rose 0.2% month on month in November.
House prices are still actually down 2% in the UK compared with a year ago as annual growth remains weak, but it’s been the strongest rise since February 2023 showing some light after what has been a tough year for the housing market.
Here’s what the experts say…
Sam Mitchell, CEO, Purplebricks, said:
“Banks are competing more aggressively on the rates they’re offering to consumers following two consecutive interest rate holds, which is driving increased activity in the housing market during a time when we usually experience a seasonal slowdown. In November, Purplebricks has seen viewings and offers increase week on week, which is unheard of this time of year.
“It is our sense that buying and selling decisions that have been held off in the face of 14 interest rate rises in a row and through the cost of living crisis will be released to fuel accelerated activity in 2024. This will be aided by increased heat in the rental market that will continue to fuel first-time buyers’ appetite to get on the property ladder. Such behaviour makes for a positive new year, as we pass peak inflation and this begins to filter through to improve overall confidence in the housing market.”
Foxtons CEO, Guy Gittins, commented:
“More property market positivity today, with house prices recording a second consecutive monthly increase.
Although the market is yet to return to full health when viewing house price performance on an annual basis, it appears as though a freeze in interest rates is helping to boost homebuyer sentiment and bring a greater degree of stability and this puts us in very good stead looking ahead to the new year”
CEO of Yopa, Verona Frankish, commented:
“A second consecutive monthly increase in the rate of house price growth provides further evidence that the UK property market will finish the year on the front foot
The latest Bank of England data also shows that mortgage approvals have started to climb following a second decision to hold the base rate at 5.25%.
It’s clear that this greater degree of stability is already boosting market sentiment and allowing buyers to act with more confidence.
The fact that they are also choosing to do so this side of the Christmas break is positive and suggests that we should see a far more settled landscape come the new year.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“It’s been a strange and uncertain year for the UK property market and so it’s only fitting that house prices should start to rally at a time of year when we usually see a seasonal lull.
Home sellers will rejoice at the strongest house price performance in nine months and, with mortgage market activity also starting to increase, the current outlook is very positive indeed.
However, those who have so widely prophesied the demise of the market over the last year will no doubt turn green with Grinch like fury having been proven wrong once again.”
CEO of Octane Capital, Jonathan Samuels, commented:
“Higher mortgage rates have been the key factor impacting property market performance of late. However, the decision to hold the base rate at 5.25% has helped stabilise the market and swap rates have been reducing consistently as a result.
With buyers now confident that their mortgage terms are only likely to change for the better, we’ve seen an almost immediate increase in the number entering the market in the form of a mortgage approval uplift,
This is also starting to help push house prices in the right direction and while the current rate of growth may seem insignificant, it’s only a matter of time before this market momentum starts to snowball.”