THE housing market can still escape a widespread crash in prices, a leading property association has said.
THE housing market can still escape a widespread crash in prices, a leading property association has said.
New figures reveal UK house prices fell by 5.3% in the year to September, with drops in price in every region of the country.
The house price index by Nationwide, the biggest British building society, showed seasonally adjusted prices stalled over the month in September, after a 0.8% drop in August.
The price of an average home was £257,808 in September, nearly £14,500 lower than a year earlier.
But Jonathan Rolande, from the National Association of Property Buyers, said there are reasons to be optimistic.
And he said a “bounce” in September activity had also provided a welcome boost to the sector.
Mr Rolande said: “Prices down 5.3% from their peak is, for many, disappointing. But this follows years where prices leapt 10 or even 15% in one year.
“Most people knew that this wouldn’t last forever, a combination of cheap borrowing and a post-pandemic bounce with enormous pent-up demand would only last so long. It is perhaps more surprising that things haven’t – yet at least – come back down to earth with more of a bang.”
On the September bounce he continued: “Ask any estate agent and they’ll tell you there was a September bounce in activity, offers and sales.
This is traditionally the case when children are back at school, and buyers, sellers and solicitors are back from their holidays.
But before we get too excited, the ‘bounce’ came from a very low point, activity was at the lowest in recent memory, but it was a bounce and, better still, not a further drop.”
He added: “Sellers, at least those who need to sell rather than are choosing to do so, have realised that to attract a buyer they must be fairer on price. That means reducing the amount it’s marketed at and also being prepared to accept less from a good buyer.
“Buyers on the other hand have grudgingly become more accepting of higher mortgage costs, especially if they can negotiate a better deal from the seller. Many are also wondering what the alternative is – live for even longer with parents or jump into the renting sector which has seen enormous inflation of rents this year. Buying, when compared to the alternatives, still makes good sense.
The flurry of activity in September will be very welcome to those in the property sector, without it, many wouldn’t have lasted the winter. It’s certainly not going to be easy, but so far at least, this is no house price crash.”