UK’s Nationwide House Price Index – Industry’s Reaction

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The UK housing industry’s reaction to the latest Nationwide House Price Index.

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UK's House Price Growth May Suffer A Sharp Dip

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“Having seen a decline in the rate of growth leading up to the original deadline, it seems the property market has managed to sidestep the stamp duty cliff edge for now, with an extension resulting in yet another sharp jump in property prices.

However, it’s now clear just how influential it has been in boosting market health and so when the clock does finally expire, there’s no doubt we will feel the impact. This will come in the form of a dramatic reduction in transaction levels, followed a few months later by a sharp dip in the rate of house price growth in the UK.”

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

“It’s clear the renewal of the stamp duty holiday deadline has once again helped to turbocharge a property market that was already firing on all cylinders. As a result, we’re seeing some remarkable levels of price growth driven by heightened buyer demand and with no end in sight until September at the earliest, we can expect house prices to continue climbing.

Interest Rates Remain Very Favourable

Managing Director of Ascend Properties, Ged McPartlin, commented:

“While economic uncertainty remains in the long-term, it certainly seems as though UK sellers and buyers remain keen to make hay while the sun shines and they have the perfect conditions to do so. Interest rates remain very favourable, affordability continues to receive a welcome boost due to the stamp duty holiday and this will only increase with the introduction of 95% mortgage products.

At the same time, a shortage of stock and buyers with a little extra in their back pocket is also seeing sellers make a pretty penny and then some.

Of course, patience is a virtue for those looking to transact at present and while there is a saving to be made, the compromise is likely to be a far longer transaction timeline.”

London's Return To Health

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

“Very positive signs to see the market traverse the original stamp duty deadline and the supposed cliff edge that awaited. Of course, this was always going to be the case with an extension being granted but we now find ourselves in a very strong position and one that is unlikely to be toppled when the new staggered deadlines expire.

London, in particular, is seeing a slow but steady return to health that bodes very well for the future. There’s a certain energy starting to return to the capital, driven by a move back towards the workplace and a reopening of the hospitality sector albeit with some restrictions remaining in place.

All of which is starting to revitalise demand across a market that has trailed behind the rest in recent months. The tail of the tortoise and the hare seems fitting given the frenzied activity being seen elsewhere but come the end of the year, we expect to see the London market sit atop of the UK property market once again.”