Industry reaction to this morning’s UK House Price Index. The latest index shows UK house prices climbed 2.5% in September and a huge 11.8% annually in the run up to the final stamp duty holiday deadline.
The Last Of The Stamp Duty Sizzle
Director of Benham and Reeves, Marc von Grundherr, commented:
“These latest figures certainly show the last of the stamp duty sizzle as homebuyers made a final push to secure a saving ahead of the extended deadline. For almost every region of the UK to see annual growth hit double figures is quite remarkable and this uplift is being driven as much by first-time buyers as it is existing homeowners.
This phenomenal rate of growth is likely to slow over the coming months, not only in the wake of the stamp duty holiday but as the usual festive lethargy starts to build and many homebuyers and sellers now look beyond the Christmas period with a view to moving.”
The Huge Impact Of The Stamp Duty Holiday On House Prices
Managing Director of Barrows and Forrester, James Forrester, commented:
“There’s no denying the huge impact of the stamp duty holiday on house prices and it’s only natural that this may start to subside slightly now the final curtain has fallen.
However, any predictions of a market crash are unlikely to come to fruition as the market remains in very good health. We’re still seeing buyers enter the market at mass and with such high demand for limited stock, sellers are continuing to achieve a very good price for their property.”
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Interest Rates Will Remain Close To Historic Lows
Head of Corporate Partnerships at Sirius Property Finance, Kimberley Gates, commented:
“To date, the Bank of England have refrained from an increase in the base rate of interest and while this may materialise in a month’s time, the likelihood is that interest rates will remain close to historic lows for the majority of 2022, if not longer.
This means that while the cost of borrowing may start to climb marginally and slow the huge rates of house price growth seen in recent months, it’s unlikely to spook the market and deter homebuyers from transacting altogether.
We’re yet to see any notable knee-jerk reactions from lenders in anticipation and there remains a wide range of products available for those considering a purchase. As always, the recommended approach is to put your best foot forward in the form of a sizable mortgage deposit, understand what additional fees you may incur and refrain from over borrowing to ensure you can easily stomach any increase in monthly repayments.”