Industry data showing increased activity
The housing market is showing resilience, with industry data showing increased activity, mortgage lenders cutting rates, and house prices still some £45,000 (+19%) above pre-Covid levels.
While it’s easy to get swept away by news of falls in house prices, it’s always important to look at the bigger picture.
The latest Halifax House Price Index, issued this week, shows that average house prices fell by -0.3% in July, a fourth consecutive monthly decline, and property prices dropped by -2.4% on an annual basis, easing from -2.6% in June.
But, Halifax says the market is displaying ‘a degree of resilience’, with industry data showing increased activity.
Kim Kinnaird, Halifax Mortgages Director, said: “These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds.”
She explained several factors were providing support, notably strong wage growth, running at around +7% annually. And, while the uptick in unemployment was likely to restrain that somewhat, it seemed unlikely to reach levels that would trigger a sharp deterioration in conditions.
She said further falls in prices were expected, but anticipated “that being a gradual rather than a precipitous decline. And one that is unlikely to fully reverse the house price growth recorded over recent years, with average property prices still some £45,000 (+19%) above pre-Covid levels.”
Lenders cutting mortgage rates
In further good news this week, lenders are cutting mortgage rates, potentially easing pressure on homeowners.
Halifax, the UK’s biggest mortgage lender, will reduce rates by up to 0.71 percentage points from tomorrow, Friday, with a five-year fixed deal priced at 5.39% from 6.10%. Other lenders, including HSBC, Nationwide and TSB have cut some rates.
Thinking of moving? Seek advice from an experienced agent
In today’s housing market it pays to seek advice from an experienced agent. There are committed buyers looking to move but they are becoming more price sensitive, and an agent who knows and understands the local housing market and prices sensibly will ensure you get the best possible outcome.
Here at Preston Baker we pride ourselves on pricing properties to sell and working diligently to get the best possible outcome for our clients.
If you would like a free, no obligation valuation please get in touch.