A buying agent has warned that despite a spate of optimistic housing market indicators in recent days, it’s still a buyer’s market out there.
His comments follow a relatively upbeat monthly housing market index report from the Nationwide, showing that prices increased by 0.6% between June and July of this year. On an annual basis, the average house price increased by 2.4% up from a 2.1% annual rate of growth in June. As a result, the average UK house price now sits at £272,664.
But Jonathan Hopper, chief executive of Garrington Property Finders, warns:”The balance between supply and demand is tipping further in favour of buyers. The summer surge usually sees estate agents’ books fill up. But this summer’s crop of new listings is being swelled by properties that were withdrawn from sale during last year’s uncertainty, as well as the thousands of homes being sold off by disenchanted buy-to-let investors.
“Despite the modest increase in Nationwide’s national rate of price inflation, in many areas prices are either flat or falling – there are simply too many sellers and not enough serious buyers. Most sellers aren’t financially distressed, but in many parts of the country those who are serious about selling are having to rein in sharply their price aspirations.
“Token price reductions of £5,000 to f 10,000 just won’t cut it, and those who set their
asking price too high risk seeing their home sit unsold on the shelf as buyers are spoilt for choice.
“Bank of England data shows that the average mortgage interest rate for buyers has now fallen for four months in a row, and the prospect of a further base rate cut next week could make borrowing more affordable still, and inspire more renters to consider buying.
“Even though Nationwide’s data shows that homes are now mathematically more affordable than they have been in a decade, buyer sentiment is finely balanced. Cheaper borrowing costs and abundant choice mean this is a buyer’s market, but most buyers are still being prudent and pragmatic and sellers must dance to their tune.”
Another respected buying agent – Camilla Dell of Black Brick – warns that “forecasts of house price growth made at the end of last year are falling like skittles.”
She cites SaviIls as the latest firm to trim its expectations, blaming a mixture of geopolitics and changes to Stamp Duty thresholds, for a slower-than-expected first half of the year. As a result, it has cut its prediction of UK house price growth this year down to just one per cent, with a total of 24.5% growth over five years.
Across London, it expects prices to remain flat during 2025, and forecasts just 15.3% growth by 2029.
In a statement Dell says: “If this sounds bad, then matters are even worse in Prime Central London (PCL), where flatlining growth would actually be good news. Prices have fallen 3.7 per cent in the past year, found SaviIls, and currently stand more than 22 per cent lower than at the peak of the market in 2014.
“The news is better in the prime suburbs, where family-oriented areas like Brook Green in west London (annual growth of 1.3%), and Putney (up 2.5%) and Wimbledon (up 3.4%), both in southwest London, are outperforming.11
And she says the market in prime London is currently dominated by domestic buyers, not overseas purchasers or investors, and they1re not looking in prime central areas.
“They are definitely the new buyers of London,11 she said. ”They are fairly young people looking for family homes, in prime outer London residential areas.”
