Halifax house price index – industry reaction
Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:
“Whilst showing a buoyant quarterly and annual rate of house price growth, today’s figures also suggest the first slip in values since summer.
“Why? Because sellers have perhaps been rather too optimistic in their pricing having been buoyed by the hype of the stamp duty holiday. While buyers have been happy to go that little bit extra to secure a property with this additional cash in their back pocket, many are starting to realise that completing in time to actually see this cash is very unlikely.
“As a result, they are now reigning in their spending and sellers are having to adjust in light of this reality in order to secure a sale.”
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“We shouldn’t read too much into one slight monthly drop in property values, particularly one that falls in January, albeit we do seem to be a nation increasingly obsessed by the minutiae of house price movements.
“The market has accelerated to new highs in the last year and we can suspect that once the stamp duty holiday ‘will he, won’t he’ is behind us, prices will continue this upward trend, backed by a vaccinated economy returning to some degree of normality.”
Group CEO of Enness Global Mortgages, Islay Robinson, commented:
“It’s becoming increasingly likely that the Bank of England could push interest rates into negative territory and this could be reflected in sub 1% home-loans by the summer.
“While this will certainly add further fuel to a property market that has fully come to the boil of late, we could well see the rate of house price growth enjoyed in recent months continue to cool.
“This is largely due to many lenders tightening their criteria and only offering the most favourable products to those with adequate, long term financial security. As a result, buyers will have to be realistic about what they can borrow and how much they can afford to pay for the pleasure, which should ensure house prices don’t spiral out of control.”
Founder and Managing Director of HouseScan, Harry Yates, commented:
“A marginal month on month decline in January is to be expected given the slow start that tends to been seen across the market following the festive break.
“While the end of the stamp duty holiday may bring a reduction in market activity levels, the impact of this reduction on top-line property values is unlikely to be felt until some months down the line.
“As a result, we can expect to see house prices continue to climb as we approach the deadline and it will take some time for the dust to settle before we know what impact its expiry has on the market, if any.
“The chances are any detrimental consequences will be minimal and amount to little more than a natural cooling in the rate of house price growth. So while current homebuyers are unlikely to benefit from a stamp duty saving, the overall value of their investment is likely to remain robust.”