Property industry reacts as house prices cool

CEO of Alliance, the Real Estate Fund, Iain Crawford commented:

“The property market has taken some hits in the last few weeks but continues to hold up quite well given the significant, wider economic uncertainty that prevails. The latest figures show that prices are down month on month but still up annually. 

However, property has time and again proven to be a stable investment despite tricky economic times when viewed over the medium to long term. As the market gradually returns to pre-pandemic norms and sentiment begins to stabilise, the smart ones will be those who saw the current period as an opportunity.

Indeed with Michael Gove throwing government house-building targets to the wind, we are likely to see major supply and demand imbalances for the foreseeable future and rising prices accordingly.”

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

“The UK property market seems to be sailing into some stormy seas as a market slowdown takes hold due to the challenges of economic uncertainty, rising inflation, higher interest rates, and a cost of living crisis gripping the nation this winter.

However the gradual reduction in house price growth should not be considered to be the arrival of the property market Grinch as falling mortgage rates are likely to buoy the market again by spring.”

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

“Although property values have dropped momentarily, the market continues to be higher on an annual basis despite the fact that we continue to face ongoing challenges but some of which are purely seasonal. 

Many will also be quick to flag these drops as a sign that a property market crash is looming, but this amounts to little more than scaremongering. It’s important that we view recent declines in context, as we are now merely starting to see a return back to pre-pandemic norms. 2023 will; not see a significant fall in house prices, mark my words, because stock remains short, new build homes are virtually non-existent in supply, and the long term mortgage rates are easing as quickly as they recently rose.”

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:

“The UK property market now looks to be entering a period of decline, with sustained price drops for the last three months - and this will be further fueled by sustained economic uncertainty and inflation that just refuses to be controlled. Average the last few monthly data points and we’re looking at an annualised potential decline in home values of over 11%.

Something was always going to give after years of double digit increases and we are now starting to see the inevitable signs of a much less settled period ahead. Winter is indeed coming.”

CEO and co-founder of GetAgent.co.uk, Colby Short, commented:

“There’s no doubt that a lot of people will make mountains out of this price drop molehill but you can ask any estate agent you meet and they’ll tell you that the UK’s housing market is a million miles from danger. Buyer appetite remains strong and, in the lead up to Christmas, agents have got plenty on their plates before the turkey is even served. 

What we’re seeing here is an inevitable normalisation of what has been an historically frantic and expensive housing market. It’s clear that we’re going to see further adjustments in 2023 but when panic is emblazoned across the front pages, take it with a pinch of salt. We are a nation of aspirational homeowners. Safe as houses? You bet.”