The housing market is showing signs of cooling, says the Halifax, as its latest index shows growing caution.
The lender says that while house prices climbed again last month, with prices up 10.5 per cent over the past year, this was slowest rate of growth since the start of the year.
Halifax says house prices have now climbed for 11 consecutive months but managing director Russell Galley cautions: "Despite the very real cost of living pressures some people are experiencing, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices," said Russell Galley, managing director at Halifax. However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it's likely activity will start to slow,.””
And he adds: “With overall buying demand down compared to last year, we may be past the peak sellers' market."
Galley also says the market is differentiating between property types. “Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home. This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wider” he suggests.
Lettings and sales agent Jeremy Leaf, a former residential chair at the Royal Institution of Chartered Surveyors, says: "The cost of living crisis and successive interest rate rises are finally having an impact on the housing market. Prices are still rising but not as rapidly as they were just a few months ago and activity is cooling."
But Leaf insists a major correction is unlikely while housing stock remains low.
Garrington Property Fingers chief executive Jonathan Hopper comments: “Despite double-digits dominating this index for four months on the trot, the property market is slowing and some people are having a hard time accepting it. Both net mortgage borrowing and approvals have slumped recently. It’s a big wake-up call for a frothy housing market two years in the making that we’re seeing the last days of foam.
“The market became detached from reality two years ago and now buyers have started to be much more careful about making sure the fundamentals of a property deal add up. They can sense change is in the air and know that the economy is likely to be in a very different place in 12 months’ time. After such a blistering run, that goes for the property market too.”
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“The market became detached from reality two years ago and now buyers have started to be much more careful about making sure the fundamentals of a property deal add up. They can sense change is in the air and know that the economy is likely to be in a very different place in 12 months’ time. After such a blistering run, that goes for the property market too.”
As landlords, we are risking our own money but we need 10% YOY house price growth if we are to keep roofs over the heads of our renters. If house prices are cooling, the government needs to bail us out.
Echis R,vyou sound as though you are overheard. Further the last thing the government will do is bail us out,they are trying very hard to bankrupt us. Three landlords murdered by their tenants hasn't brought any response, has it ?
Spell checker, should have said "sounds as you are overgeard."
Echis, my friend the Government won’t help us out they are determined to destroy us. Without going over all the stuff we have aired on here in recent years.
What’s the very minimum we need to let out a Property from an administrative point of view alone enough to choke a donkey. ‘How to Rent Guide 17 page’s’ Electrical Condition Report, The Gas Certificate, The Fire Alarm Certificate, The Energy Performance Certificate, The Emergency lights Cert in HMO’s, Information Commissioner Office check, The Carbon Monoxide Alarm, The Tenancy Agreement (The Government version unworkable and disgraceful 70 pages). All this is supplementary to the letting you haven’t checked The Tenants status yet or their ability to pay or reference.
I think its no wonder it only most of the ones that don’t comply make to money. For example I see one Road where I have a property, 8 others let properties have an expired EPC some are years out, another Road I have one 15 with expires EPC’s and another Road with 34 expired, I believe 30 are let, what’s going on or are the rest of us wasting our time and giving ourselves nightmares, how do they know even if they have the minimum’E’ ? . Its all Public Knowledge on Gov’ web site you don’t need to be Columbo.
Micheal Foley, the conservative government is pro Germanic and with the exception of Churchill always has been. We have a similar profile and are natural targets. Under cover of covid billions have disappeared, test and trace and bounce back loans an examples.The fraud squad has been virtually disbanded. Ps you have forgotten making tax digital.!
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