07 December 2023
If you are covering Halifax’s latest House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“New statistics on UK house prices suggest a market that's cautiously threading its way towards stability. The 0.5% rise in November, as shown by Halifax this morning, is a small yet telling step in a market that has witnessed a modest annual downturn of 1% but could have suffered much more considering the economic backdrop. This slight increase, emerging amidst a tangle of economic uncertainties, points to a potential growing resilience within the housing sector although its likely underpinned by a seriously lack of housing stock.
“However, mortgage approvals, are on a upwards trajectory, albeit at a measured pace. The Bank of England's latest data reveals a budding increase in approvals, painting a picture of cautious optimism among potential homebuyers, despite the shifting changes in financial stability as a result of fixed rate deals still coming to an end for people and new much higher mortgage costs being realised.
“Yet, the wider narrative remains tinged with caution. The striking 21% year-on-year fall in residential transactions according to recent government stats is a stark reminder of the market's current hesitance, revealing the public's wait-and-see approach in the face of fluctuating house prices and mortgage costs.
“The push and pull of limited housing stock against high rental costs are nudging individuals towards homeownership. However, the shadows of steep mortgage rates and broader economic uncertainties are acting as a counterbalance, putting a stop to a more dynamic resurgence of the market after a long period of inactivity.
“As the months roll on, the housing market's journey towards recovery will largely hinge on the evolving patterns of interest rates and the overarching economic climate. It all boils down to the interplay between supply and demand.”
