Experts say deals to be done for serious buyers
The slowing of house price growth, from 2.2% in June to 1.8% in July and up just 0.1% up on a month-month basis according to the latest house price index from Nationwide, continues to dampen demand but there are still deals to be done for serious buyers.
Nicholas Finn, managing director of Garrington Property Finders, said: “People who need to move for work or life reasons continue to do so, but many discretionary buyers are opting to wait until the dust settles.
“As a result the few serious buyers who are out there are spoilt for choice and making the most of their powerful negotiating position. There’s a surfeit of homes for sale in London and the southeast; buyers who have their financial ducks in a row have their pick of the crop and can often secure sizable discounts off the asking price.”
A resilience rather than a collapse
Jason Tebb, president of OnTheMarket, said the latest HPI showed a continued resilience of the market, rather than a collapse. “Despite the impact of renewed hostilities in the Middle East on inflation and subsequently interest rates, stalling the expected downwards momentum of base rate this year, the resilience of the market is evident. The signs are that the market has steadied itself and buyers and sellers are getting on with it.”
Graham Nicoll, financial planner, chartered FCSI at NCL Wealth Partners, said the slower growth shouldn’t be over-analysed. “A 0.1% monthly movement or a slight change in the annual growth rate makes for a headline, but it tells us very little about the underlying health of the housing market. We have become obsessed with analysing every tenth of a percent when property is a long-term asset, not a month-by-month trading market.
“The figures suggest a market that is steady rather than strong. Buyers remain cautious, affordability is still stretched and uncertainty around interest rates continues to influence confidence, but we’re not seeing signs of a sharp correction either.”
Nathan Emerson, CEO at Propertymark, agreed: “Steady house prices reflect a housing market that continues to find balance despite ongoing economic and political change.”
Agreeing that the holding of the interest rate at 3.75% in July will help stability, Emerson said the next priority should be greater policy certainty. “As the new Prime Minister develops his housing agenda, clarity around taxation, housing supply and long-term reforms will help reinforce confidence across the market. Stability in policy is every bit as important as stability in interest rates.”
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