Although the steady climb in prices has been a bit slower towards the end of 2014, property inflation remains high, experts find.
“With all attention focused on the downtrend in property price growth in recent months, we’re in danger of forgetting that a double-digit rise in home values over the past twelve months is an impressive leap. And after the exertions of the summer months, this is simply a period of natural re-calibration, restoring a more sustainable pace of price inflation,” Peter Rollings (left), chief executive of estate agent Marsh & Parsons, said commenting on the latest ONS house price index.
According to the ONS data, released today, the average house prices in the UK grew by 10 per cent in the year to November 2014, down from 10.4 per cent in the year to October 2014. The UK mix-adjusted house price in November was £271,000.
Looking ahead, Rollings expects to see a new surge in house prices soon.
“The first half of the year is typically the most energetic for the property market, and we’re already seeing reinvigorated demand in the New Year, as more people turn their sights to getting their foot on the property ladder or moving home. Conditions are ripe for buying, with a rise in supply of property for sale, a relaxation in bank lending criteria and historically low mortgage rates ensuring less fraught competition for homes,” he commented.
Andy Knee (left), chief executive of outsourced property services provider LMS also agrees that despite the slowdown in recent months prices still are too high.
“For the thousands of first-time buyers who have struggled to get on to the housing ladder, many will welcome the news of house price growth slowing, yet prices remain out of reach for many and are still a huge hurdle to overcome with prices paid up 11% from November 2013,” Knee said.
He hopes for more stability in the New Year.
“The slowdown in activity in the market may be reflective of wider changes in the economy; specifically uncertainty ahead of the election in May, 15-year low inflation and continued speculation about interest rates could all lead to a lack of confidence. 2014 saw greater appetite from lenders and it would be hugely detrimental if this were to be damaged or curtailed as a result of slower growth.
“Hopefully 2015 will usher in a year of greater prosperity for the economy, as wages can finally start to see some improvement and unemployment rates remain low, it would be optimistic –but not totally impossible – to expect a year of greater stability and sustainability for the housing market too,” he said.
