Residential property price growth has slowed in recent months, but this deceleration now appears to be stabilising, the latest figures from Zoopla suggest.
Average UK house prices are currently 1.3% higher than they were a year ago, with property sales agreed are up 5% compared to the same period last year. according to the data.
However, ongoing speculation around potential tax changes may affect demand for higher-value homes – particularly those priced above £500,000, which currently account for a third of properties on the market.
Read the full the report here: House price growth stabilises over summer as buyers remain price sensitive – Property Industry Eye
Industry reactions:
Nathan Emerson, CEO of Propertymark, comments:
“Stable house prices within the housing market are a welcome sign for groups such as first-time buyers, who can better take advantage of a period of steadiness.
“Despite property transactional taxes increasing in some nations and financial and economic pressures continuing for many, there still seems to be plenty of property choice for buyers. It remains important that sellers continue to have realistic price expectations and place their property on the market accordingly to help empower an efficient sales process.
“It is also important to consider the crucial role that housing plays within the wider economy, and it is positive to see commitments from all governments across the UK to deliver much-needed new housing stock to keep pace with predicted population growth. We are also hearing of future potential proposed changes regarding Stamp Duty. However, it is vital that tax reform is conducted in a way that does not penalise aspiring homeowners with additional costs that hinder their chances of moving house.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “We are seeing a lot of price reductions, and those reductions do lead to sales.
“It’s a real challenge to get pricing right at the moment with all the political talk around potential tax changes, as well as the significant amount of stamp duty buyers face. London is very different to the rest of the country, and even within London we have micro-markets.
“Here, the mid-range market is still healthy, whereas it’s tougher at the first-time buyer level and at the very top end.
“When a property is initially overpriced, it can sit for a while, but once the price comes down to where buyers feel it should be, it will sell. That’s why we are still achieving sales in all price brackets, which does differ slightly from Zoopla’s national statistics – but that’s the nature of working in a small, highly specific market within a much larger one.”
Tom Bill, head of UK residential research at Knight Frank: “A price-sensitive housing market has become a whole lot more price-sensitive over the last fortnight thanks to the speculation around property taxes. With supply still outweighing demand as autumn approaches, we expect price growth this year to hover not far above zero. A November Budget means weeks of more speculation in a tiresome re-run of 2024 that will keep a lid on transaction activity and stamp duty revenue.”
Jeremy Leaf, north London estate agent and a former RICS chairman, says: “The market inevitably lost a little steam over the summer period with so many decision makers away and listings continuing to pile up.
“Nevertheless, quality replaced quantity as we noticed agreed sales holding up well with little or no renegotiation although did take a little longer.
“Unfortunately perhaps the government do not appreciate that even rumours of a new property tax can have a detrimental impact on housing market confidence and activity which we certainly witnessed ‘on the ground’ since the story broke last week.”
Matt Thompson, head of sales at Chestertons, says: “Buyers used the summer holidays to review their finances and refine their search criteria or started booking viewings of homes they already shortlisted. The number of properties coming onto the market, however, has clearly decreased. Whilst there was a substantial increase in landlords selling up amid the Renters’ Rights Bill earlier this year, it was considered a momentary uplift that has now rebalanced. As a result, buyers might find it more challenging to secure a property within their budget and are advised to start their property search as early as possible.”
Stuart Bailey, head of London super-prime sales at Knight Frank: “Good advice around not just pricing but strategy, from experienced professionals, has never been more important. The autumn market is about to begin and this year will be shrouded by speculation of how to decipher the government’s messaging on property tax. Either way, sentiment impacts decision making and the longer a property takes to sell (if mis-priced for example), the bigger the risk of something going wrong, as buyers become ever more hesitant, and the risk of market slow down increases.”
House price growth stabilises over summer as buyers remain price sensitive
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-zoopla-house-price-index-17/
