2 October 2023
If you are covering the Nationwide House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"The economic events of the last year have taken their toll on the housing market and according to Nationwide, September saw no house price growth at all and remain 5.3% down over the year. This should come as no surprise given the affordability pressures that people are under given elevated interest rates and the cost of living.
"However, there might be a glimmer of hope on the horizon now that we should have reached or neared the peak of interest rate rises. This means that people who have seen significant wage growth over the last year can now better plan their finances for a property purchase amidst this new more stable interest rate environment. That said, we are not likely to see a great decline in mortgage rates any time soon and as such many will remain priced out the market despite higher wages. Mortgage rates though will start to slowly edge downward as lenders compete for custom in a tight market.
"Recent mortgage and property transaction data shows that the market is incredibly subdued for this time of year and things may continue to stay quiet as we head into the winter months. This could also cause sellers, who need to move as quickly as possible, to trim their asking prices which will lure more people to market in pursuit of a good deal.
"The housing market remains in flux at the moment, any apocalyptic predictions for a huge price crash so far look unlikely to materialise but the market is still by no means out of the woods. Prices may continue to edge downwards or stay flat as they have done this month for the next few months before the road to full economic recovery becomes clearer."
