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Agent urges price-sensitivity despite strong housing market data

UK house prices rose by 0.7 per cent in February, says the Nationwide, after taking account of seasonal effects. 

This resulted in an improvement in the annual rate of house price growth to 1.2 per cent in February, from a fall of 0.2 per cent the previous month. 

House prices are now around 3.0 per cent below the all-time highs recorded in the summer of 2022.


Nationwide chief economist Robert Gardner says: “The decline in borrowing costs around the turn of the year appears to have prompted an uptick in the housing market. Indeed, industry data sources point to a noticeable increase in mortgage applications at the start of the year, while surveyors also reported a rise in new buyer enquiries.

“Nevertheless, near-term prospects remain highly uncertain, in part due to ongoing uncertainty about the future path of interest rates.  

“Borrowing costs remain well below the highs recorded last summer but, if the recent upward trend is sustained, it threatens to restrain the pace of any housing market recovery.

“While the squeeze on household budgets is easing, with wage growth now outstripping inflation by a healthy margin, it will take time to make up for the ground lost over the past few years, especially given consumer confidence remains fragile.”

Jeremy Leaf, a north London estate agent and a former RICS residential chairman, says: “There tends to be an over-concentration on property prices when it comes to assessing how the housing market is performing. Prices impact buyer and seller confidence but transactions and affordability, which is most stretched in higher-value areas such as London, are arguably more relevant.

“In our offices, more valuations, listings and viewings combined with fewer fall-throughs than this time last year are feeding through to agreed sales, mortgage approvals and exchanges.

"However, while Nationwide reports another rise in prices, the market does remain price sensitive. Only competitively-priced properties are attracting attention. Sellers must price realistically or offers won’t be forthcoming and market improvement may not be sustained.”

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    Strong Market that’s a laugh, only because the Auction Rooms are full with Landlords getting forced out, are those Sales what you deem to be a strong Market.

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    So no comments allowed on Khan's false claims, or were those 30,000 all in arrears of rent ?


    Andrew, since Kim Jon Norwood took charge, censorship reins. Although you would expect him to be happy for landlords to challenge Sad IQ Khan.

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    Perhaps we deserve an explanation of why comments on Khans antics have been barred? We’re waiting!


    Don’t hold your breath. 😱
    What usually happens when Kim Jon Norwood stamps his feet is that we find another thread, like this one, to vent our feelings. 😂🤣😂🤣😂🤣🤣😂

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    The market will see a decrease once it gets flooded with properties landlords selling off. I have noticed a lot of licensed HMO’s going on the market hoping to attract buyers returning them to large family homes. Not convinced the Council will allow that although they will have to if no landlord buyers.


    Gov’s given councils a ‘fat wodge of tax payers money’ to buy them at knock down prices. So no, they won’t allow hmo re designation and can/will force the market down, I reckon.

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    Around 1.4 million people were given visas to work, study or live in the U.K. in 2023.
    No shortage of tenants obviously. In 2022 the number was even higher.
    They can keep the war on LLs and see where all these people will be housed. Extraordinary shortsightedness .

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    Interesting that the head of Nationwide is encouraging realistic pricing of property for sale.

    In the same spirit of realism, can I ask for realistic pricing of mortgage product, realistic levels of taxation on LL's, realistic regulation of LL's, realistic government EPC policy, realistic deduction of mortgage interest as a cost of business, realistic powers to evict problem tenants who don't feel its a priority to pay their rent.

    Certainly LL's can be realistic, but are the banks and the government realistic?? Are the tenant activist groups realistic?


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