Property industry experts have analysed today’s announcement from Nationwide that house prices were largely flat in July.
Prices still rising
Legal & General Mortgage Club director Jeremy Duncombe says: “Subdued growth in the price of property might be a welcome sight for many potential buyers, but annually house prices continue to rise well above wage inflation.
“Rising prices do highlight the stability of the housing market, but for many first-time buyers it only makes it harder for them to take the first step.”
Consumer confidence strong
Mortgage Advice Bureau head of lending Brian Murphy says: “The data released from the Nationwide today reflects lending for house purchases at post survey approvals stage, so provides us with one of the first snapshots of the UK housing market in July from one of the country’s biggest mortgage providers.
The figures this morning suggest that house price growth is still in positive territory, with both a 2.9 per cent annual increase and a 0.3 per cent month on month increase.
“This underscores what Mortgage Advice Bureau are observing in the market and have been saying for some time, which is that consumer confidence in property remains robust and that demand remains largely undented.”
Octane Capital chief executive Jonathan Samuels says: “Weak supply has once again ridden to the rescue of house prices.
“While demand is down at a time of economic and political uncertainty, the shortage of homes, both for sale and being built, is preventing prices from falling sharply.
“The prospect of the first interest rate rise for many years, and the potential fallout that will ensue, is causing many households to err on the side of caution.
“Record low mortgage rates are helping what demand there is but it’s hard to see anything other than a sideways moving market for the rest of 2017.
“In the current climate, it’s unlikely demand will increase sufficiently to drag the market out of its current rut.”
Market bouncing back?
EMoov.co.uk chief executive Russell Quirk says: “UK homeowners will have their fingers crossed that this turn around in price growth will be more consistent than the British summertime.
“At a glance, it looks as if the dark clouds of buyer and seller uncertainty are finally starting to lift from the UK housing market, with welcome signs of positive property price growth beginning to shine through.
“The summer months can generally be a slower time of year with many taking a break from their sale to go away, so it is promising that the market has bounced back despite the slump in transactions and mortgage approvals witnessed in June.
“Although buyer demand may take some time to return to normal levels, a sustained shortage of stock should continue to stimulate an upward price trend.”