Property prices will fall 1.1 per cent this month - December - according to a forecast by comparison service Reallymoving.
However any dip in capital value for landlords’ portfolios should be brief: it says there will be a rebound of 2.5 per cent early in 2022.
Rob Houghton, chief executive of Reallymoving, says: “Transaction volumes are unsurprisingly down since the end of the stamp duty holiday but the outlook for the housing market in early 2022 is positive.
“The most intense phase of the post-pandemic boom has now subsided bringing about a brief autumn lull, but the fundamental supply and demand imbalance continues to support prices and, while the threat of interest rate rises will give some buyers pause for thought, thanks to stress-testing by lenders most homeowners will be able to absorb small rate rises over an extended period of time without too much trouble.”
He adds: “House price inflation for first-time buyers has been lower than for upsizers and downsizers, meaning first-time buyer activity levels are reassuringly high at around 54 per cent of all buyers – an encouraging sign of market health.
“An anticipated surge in new listings in the new year will drive activity, boost transaction levels and help existing sellers to complete chains.”
Reallymoving calculates projections on the purchase prices when home buyers search its website for conveyancing quotes and other moving-related services.
It says purchasers typically search for quotes three months before their purchase completes, which provides an indicator of house price trends over the months ahead.
It analysed over 18,000 conveyancing quote forms when forming its latest figures.
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