04 Dec HOUSE prices are set to fall “further and faster” between now and the Spring
HOUSE prices are set to fall “further and faster” between now and the Spring, a leading property expert has predicted.
Data released this week revealed prices dropped by 1.4% in November compared to those paid in October. That equates to around £5,000 off the value of the average UK property.
Jonathan Rolande, from the National Association of Property Buyers, said the data points towards the fact “worse is to come” because the impact of the botched mini-Budget had yet to be reflected in official statistics.
He said: “The newly released data only measures November completions, so will be largely unaffected by the fallout from the botched mini Budget.
“It is likely that in the coming months we shall see the true impact this had on the market. I suspect that prices are likely to drop further and faster between now and the Spring.
“Optimists are hoping for a Spring bounce and are hoping that lower cost mortgage deals hit the market, and that the seasonal change entices more buyers to start their search for a new home.
“But it is too early to say whether this will be the case, and much rides on how the Government manages to navigate the cost of living crisis.
“One thing is for certain, anyone suggesting a house price crash would be a good thing should be very careful what they wish for.
“This would likely crash the economy – at a time where things are already perilous.
“And people should remember that even if house prices fell by double digit amounts this would still only put us back to where we were pre-pandemic, where many areas had over-inflated prices as it was.”
It was reported last week that UK house prices saw their biggest monthly fall for more than two years in November as rising interest rates put off buyers.
The Nationwide bank said prices fell 1.4% from October, which was the largest month-on-month fall since June 2020.
Annual house price growth saw a “sharp slowdown”, the building society said, falling to 4.4% from 7.2% in October.
The lender added the housing market looked set to “remain subdued” in the coming months.
Earlier this month, the government’s official forecaster predicted that house prices will fall by 9% over the next two years as affordability issues weigh on demand.
The average property price fell to £263,788 last month from £268,282 in October, the Nationwide said.
It said the housing sector was still being affected by the fallout from September’s mini-budget, which triggered a rise in mortgage rates and also led lenders to suspend hundreds of mortgage products amid turmoil on the financial markets.
