Industry reacts as property values cool
CEO of Alliance, the Real Estate Fund, Iain Crawford commented:
“Despite the challenges of economic uncertainty the housing market continues to hold up pretty well, with the latest figures showing prices marginally down when compared to last month. As expected, challenges such as increased mortgage costs and the usual seasonal slowdown at this time of year have started to bring us back to pre-pandemic normality.
Those expecting a housing crash are likely to be disappointed as real estate remains one of the most sensible investments you can make, and even if we see a gradual 5-10% price decline in the coming year - the massive growth seen over the last couple of years should still leave us in good spirits to tackle whatever the coming months may bring.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“Further market slowdown is to be expected as a consequence of recent political errors, ongoing economic uncertainty, and the cost of living crisis. A gradual reduction in the rate of house price growth should be welcomed, as this will help the market steadily return to pre-pandemic norms rather than falling off a cliff edge. First time buyers will surely be rubbing their hands.
In many ways London is well-positioned to absorb the slowdown as house price growth has been more subdued in the capital, while Londoners are also better placed to financially stomach the trickier economic landscape we will be faced with next year.”
Managing Director of Barrows and Forrester, James Forrester, commented:
“Whilst a 1.4% drop is the largest fall in two years, and despite many commentators and so-called experts in recent weeks seemingly encouraging meltdown within the property market, the latest figures show we are now merely starting to see a steady return back to pre-pandemic normality. The measured pace back to a balanced market should be celebrated yet also met with the reality that we are not seeing, nor will we see, a housing market crash.
Although we are now seeing a slight reduction in price growth, with perhaps temporary and marginal price decline to follow as the market normalizes again, grinch-like forecasts and fears of a property market crash should be put to bed as fixed rate mortgage costs now reduce as an early Christmas present for homeowners. With dwindling economic headwinds in 2023, we expect the property market to perform well.”
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:
“Once again the signs are clear that we are seeing a housing market with little fuel left in the tank as the challenges of economic uncertainty and runaway inflation take their toll.
What goes up must come down and as expected, the marked decline in buyer demand driven by over-inflated prices has resulted in a current downward trajectory in values to match diluting demand. Many buyers have been faced with increasing mortgage costs and in turn this has applied the brakes to an already stalling market - and so we can expect a tricky time ahead as people struggle with higher all-round costs.”
