1 December 2022
If you are covering the Nationwide House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“Today's Nationwide house price index shows that the lack of demand in the market, as a result of the cost of living crisis, is now taking its toll on house prices. According to the statistics, there was a 1.4% month-on-month fall, representing the biggest drop since June 2020.
“While we are far from the torrid times from early October when the fall-out from the mini budget was having a significant impact on people's moving plans, increased mortgage rates will still be affecting some people's plans. Instead of suffering the cost of moving during the cost-of-living crisis people are opting to batten down the hatches and ride out the cost-of-living storm.
“Those coming to the end of fixed term deals should seek help from lenders or advisers to ensure that they can find the best deal available as the market has shifted significantly and individual circumstances may dictate that other types of mortgages that have been less popular in the past, like tracker mortgages, offer better value for money than a shorter-term fix. Everyone's circumstances are different so seeking advice is key.
“With the stamp duty cut still in play and a serious lack of stock in the market, we should experience just a dip in the housing market as we adjust to a new cost environment which should eventually ease. When it does, property prices are likely to rebound. It may therefore make sense for first time buyers to sit on their hands for the time being and wait for prices to bottom out. However, timing the market is no easy feat and it's unwise to put life on hold if you need to move or buy.”
