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Property industry reacts to latest Nationwide House Price Index
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The latest House Price Index from Nationwide reports an annual increase of 12.6% in February. This is up from 11.2% in January.
Month-on-month, prices are up 1.7%, with the average house price exceeding £260,000.
Michael Bruce, CEO and Founder of Boomin, comments: “We’re riding a wave of house price growth at present, driven by a market that is experiencing very high demand for homes that just simply aren’t available. It’s only natural that this wave will start to lose ferocity at some point, but there’s certainly no signs of that happening just yet, despite a squeeze on the cost of living and a double-digit increase in interest rates.”
Jonathan Samuels, CEO of Octane Capital, comments: “Although two consecutive increases in interest rates is always going to be food for thought for the nation’s home buyers, what we’re currently seeing is consideration, not concern.
“While some may have marginally adjusted the sums they are committing to borrowing, the sheer volume of new buyers entering the market remains very high and this is enough to keep house prices buoyant for some time to come.”
Marc von Grundherr, Director of Benham and Reeves, comments: “There’s arguably never been a better time to be a homeowner as, despite all that’s been thrown at it, the UK property market continues to go from strength to strength. This performance really is quite alarming when you consider the wider economic turmoil that we’ve faced for some years now and it proves that there really is no safer investment than bricks and mortar.
“Even across London where market conditions have remained far more muted, values have continued to climb and the capital’s property market is now poised to enjoy an accelerated rate of growth over the coming year.”
Chris Hodgkinson, Managing Director of HBB Solutions, comments: “Although top line market statistics paint a very positive picture, it’s important to remember that the UK property market is extremely fragmented in its nature. The key to a successful sale is understanding your own local market landscape, the demand for homes and pricing in accordance with these factors.
“Failure to do so and pricing too high will only see your home suffer from a severe lack of interest, a protracted period of time spent on the market and a higher chance of turbulence further down the transaction timeline.”
James Forrester, Managing Director of Barrows and Forrester, comments: “Yet another increase in property values demonstrates the current strength of the UK property market and the deafening silence coming from the usual band of property market naysayers is no better testament to this overall health.
“Despite many prophesying the end of the market due to Brexit, the pandemic and the end of the stamp duty holiday, amongst other things, we’re yet to see a chink appear in the armour of what is perhaps the most defiant and dependable property market in the world.”
