Capital values are set to fall “further and faster” between now and the spring, a property expert predicts.
Mortgage lender figures have shown that prices dropped by 1.4 per cent in November compared to October. That equates to around £5,000 off the value of the average UK property.
Now Jonathan Rolande, from the National Association of Property Buyers, says 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 says: “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 month 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 said annual house price growth saw a "sharp slowdown" to 4.4 per cent from 7.2 per cent in October.
The lender added the housing market looked set to "remain subdued" in the coming months.
The government's official forecaster - the Office for Budget Responsibility- has already predicted that house prices will fall by nine per cent over the next two years as affordability issues weigh on demand.
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“ A Spring Bounce “ 😂😂 some will be lucky not to be repossessed. We are in for years of pain.
There won't be any 'spring bounce' given how property prices have increased recently only those with excessive debt and having to sell will be faced with a problem
Seems more likely that things will continue to drop until at least 2024 if not beyond. Might be good if you are looking to buy.
Having done a few remortgages earlier this year I would say there has been a massive difference between asking prices and valuations for the whole of this year. I had various conversations with valuers and they were certainly squeamish about some asking prices. That was back in April/May, long before either mini-budget.
As an example one of my Barratt houses was valued at £450000 for remortgage purposes. An identical house on the same estate with a smaller garden was put on the market 2 weeks after that valuation at £595000. It dropped to £580000 and has now been put with a different agent at a fixed price of £575000. It's still massively overpriced and even if they do find someone willing to offer anywhere close it's highly unlikely a mortgage valuer would support it.
Smoke and mirrors 💰💰
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