Property values fall for first time since June 2020

CEO of Alliance Fund, Iain Crawford, commented:

“The first annual decline in house prices seen since June 2020 suggests that the pandemic market boom has officially fizzled out, although we’ve seen signs that property values have been normalising for some months now.

This was only to be expected given the financial strain facing many households, coupled with mortgage market turbulence that followed September’s blunderous mini budget.

However, the property sector has stood firm all things considered and we’ve seen growing confidence in the market so far in 2023, confidence that will only grow further as inflation eases over the coming months.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“House prices have been sky high for quite some time and it’s fair to say that, having flown too close to the sun, they’re now starting to come back down to earth as a result of wider economic headwinds.

The good news is that this return to normality has been a smooth one so far and we’re yet to see the crash landing that many so widely predicted.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“The high rates of house price growth seen in recent years simply weren’t sustainable and, in fact, a reduction in property values, however marginal, will be warmly welcomed by those struggling to overcome the high cost of homeownership.

That said, we’ve seen a strong start to the year where housing market activity is concerned and so those who do want to capitalise on cooling house prices are best advised to act sooner rather than later, as this negative trend certainly won’t last for long.”

Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:

“While confidence in the housing market remains high, a combination of economic uncertainty, financial instability and increasing mortgage costs are now starting to take their toll where property values are concerned.

This was inevitable following such an unprecedented boom period and it’s likely that we’ll see further corrections over the coming months, as both buyer and seller continue to find their feet in a changing landscape.

However, we do believe that once this correction has been made, stability will return and house prices will rebound in the long term.”