Property industry reacts as property values hit another high

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

“Yet another record rate of house price growth demonstrates that the UK property market is very much marching to its own tune at present and we can expect it to continue to do so as we head towards the final stretch of 2022.

With the London market now starting to shift through the gears, this will only bolster the might of the property market further and bring an even greater boost to house prices over the coming months.”

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

“Every time we think the housing market is starting to wobble, it rebounds to reach yet another record high, defying the economic angst that has engulfed the nation in other areas of our day to day lives.

Despite the increasing pressure on our household finances, the nation’s buyers continue to fight tooth and nail to climb the ladder and this sustained demand has helped keep any downward pressure on property values at bay.

We can, of course, expect this high level of market momentum to ease as we head towards Christmas. But make no mistake, this is a seasonal trend that materialises in the same way Mariah Carey does come the 1st of October and any negative movement is sure to be reversed once the market reopens for business come January.”

Founding Director of Revolution Brokers, Almas Uddin, commented:

“We’ve seen the level of buyers entering the market via the mortgage sector remain robust in recent months and this ongoing demand has helped the market sidestep any decline in house prices thus far.

Of course, with a further increase in interest rates expected, the cost of borrowing is only going to grow as the months go on. With the cost of living crisis also putting a pressure on our household finances, it’s inevitable that the market will show some signs of slowing, but exactly when remains to be seen.”

Managing Director of HBB Solutions, Chris Hodgkinson, commented:

“There’s no doubt that the UK property market is taking far longer than expected to buckle under the pressure of wider economic instability, but cracks are certainly starting to show, as the rate of house price growth starts to ease.

The nation’s sellers have started to realise that they can no longer expect the inflated price for their home that had become commonplace during the pandemic and they are having to adjust their asking price expectations accordingly.

We’re also seeing a far greater degree of caution from lenders which is increasing the likelihood of a down valuation even after a price has been agreed by buyer and seller. This is leaving them adrift by around £8,000 on average and it’s only a matter of time before this market instability shows its face where topline property values are concerned.”