Property values stabilise, latest Halifax figures show

CEO of Alliance Fund, Iain Crawford, commented:

“House prices appear to have stabilised at a far quicker pace than anticipated, following the string of significant downward monthly corrections caused by the turbulence of last September’s mini budget.

This suggests that the nation’s homebuyers and sellers are coming to terms with the new normal of higher interest rates and are continuing to transact at this new middle ground, having adjusted their position in the market accordingly.

However, we’re certainly not out of the woods yet and while the current outlook is a more positive one, the wider economic landscape and the current cost of living crisis will continue to have an influence.

As a result, we can expect a slower market in comparison to previous years, although the potential for any significant correction to house prices is looking increasingly less likely as the days go by.”

Jason Ferrando, CEO of easyMoney says

“The property market has put in a fairly resilient display so far this year and we’re yet to see house prices plummet, putting previous predictions of a market crash to bed for the time being.

However, a shot in the arm in some shape or form isn’t out of the question and the government may choose to deliver this by incentivising buyers via the spring statement at the end of the month.

As it stands, there doesn’t seem to be any direct focus on housing on the agenda, but a curve ball certainly isn’t out of the question and boosting market health by fuelling demand is a hand we’ve seen the government play on countless occasions.”

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

“Although previous reports of housing market health have been less than positive, those of us on the ground are privy to changes in market sentiment far sooner than the reporting of topline statistics allows.

While current house price performance may remain sluggish when compared to the meteoric rates of the pandemic market boom, there’s been a notable uptick in activity in 2023 and this has reversed the rot seen during the back end of last year.

Yes, we expect the market to move forward at a more measured pace over the year ahead, but what we simply aren’t seeing is an exodus of buyers forcing sellers to dramatically reduce prices, bringing the market to its knees in the process.”

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

“The housing market continues to stand firm in 2023 and the general economic outlook is far more positive than anticipated. So we can expect that the property market itself will be largely overlooked in this month’s spring statement, particularly given the fact that house prices have stabilised in recent months.

That said, any help afforded to households to help combat the cost of living crisis should have a spillover effect, boosting market sentiment and ensuring that any notable market downturn is avoided.”