Following the release of the Private Rent and House Price data from the ONS that showed that house prices once again have been pushed higher, industry experts have shared their thoughts with IFA Magazine.
Malcolm Webb, Risk Director, Legal & General Surveying Services, comments: “These latest house price figures show the housing market is holding strong as we gear up for the final stretch of 2024. Mortgage rates remain more competitive than just a few months ago and innovative products – some offering up to six times your income – are keeping borrowers engaged. Buyer demand is up by 26% compared to this time last year and the latest Legal & General Ignite data shows that broker searches for first time buyers rose by 9.1% in September. Plus, activity in Q4 will be further boosted by thousands of borrowers looking to remortgage.
“Whether you’re buying for the first time or nearing the end of your existing deal, getting professional mortgage advice should be at the top of your checklist. Even seasoned homeowners can find the market tricky to navigate, but with the guiding hand of an adviser, you’ll be well positioned to secure a positive outcome.”
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments: “All eyes are on the Budget in a fortnight’s time, but the housing market clearly isn’t waiting for the Chancellor’s speech to make moves towards recovery and growth. A modest summer house price surge after the July election is a sign of confidence steadily returning.
“House prices have been chalking up marginal but consistent gains since the start of the year, helping to put homeowners in a better financial position despite the higher interest rate environment. The pledge to shield working people from tax rises should mean this Halloween Budget doesn’t spook the markets and mortgage affordability should emerge intact.
“We’ve not yet settled into ‘business as usual’ mortgage lending in the post-pandemic era, and it’s very likely the new status quo will involve a bigger and more active market for second charge mortgages than before. A £2bn market for homeowner loans is within sight while still representing the tip of the iceberg.
“If you’re a homeowner in the process of making financial plans and weighing up your borrowing options, the chances are you’ll default to thinking about credit cards, personal loans and very little else. This ingrained habit means second charge or ‘homeowner loans’ are often the forgotten child of the mortgage world, but many people might find the time invested in seeking expert advice pays off in a better outcome, thanks to the flexibility, certainty and affordability which homeowner loans can provide.”
Aaron Milburn, UK Managing Director for Pepper Advantage, said: “UK inflation appears to be coming under control, but you wouldn’t know it from looking at house prices, which rose again in August.
“Helping fuel demand for the existing housing supply has been a steady recovery in mortgage approvals over the last few months, largely driven by a series of rate cuts for fixed-rate mortgages by high-street lenders, with Q2 approvals in our portfolio reaching their highest since the September 2022 mini-Budget.
“All eyes are now on the upcoming Budget. On the supply side, buy-to-let mortgage holders — already struggling with higher rates — will be wary of potential increases in capital gains, while housebuilders will be watching for the greenlight to start building. Meanwhile, consumers are continuing to keep an eye on budgets after a challenging few years. These complex variables and the prospect of further rate cuts will dictate how the housing market fares heading into 2025.”
Alex Upton, Managing Director, Specialist Mortgages, Hampshire Trust Bank said: “The rental market is showing no signs of slowing down, with rents continuing to rise across the country. Zoopla’s latest data highlights a 25% drop in available rental homes compared to pre-pandemic levels, while tenant demand remains sky-high. Unsurprisingly, this supply-demand imbalance is driving rents even higher, placing added pressure on tenants.
“Despite the narrative around landlords leaving the market, the data paints a different picture. According to Lomond, the number of tenanted properties listed for sale has fallen by nearly 20% since the end of June. It’s clear that while some landlords may be selling, many are instead adjusting their strategies to maximise yields. At HTB, we’re seeing a continued shift towards higher-yield investments, such as HMOs, which allow landlords to spread risk and generate stronger returns in today’s market.
“With the upcoming Autumn Budget, landlords are watching closely for any further regulatory changes, especially around Capital Gains Tax. However, the long-term view remains: professional landlords are adapting to these challenges, exploring niche opportunities, and staying invested in the sector. Time will tell how government policy unfolds, but for now, the data indicates landlords are finding new ways to thrive rather than exit.”
Richard Harrison, Head of Mortgages at Atom bank, comments:
“House prices have been pushed higher once more, off the back of a much more active housing market. Data from Rightmove shows that the number of agreed sales is up by 25% on this point last year, with plenty of buyers who may have put their plans on ice deciding to pull the trigger. Sellers are more confident too, with the number of new sellers up by 14% on last year, while estate agents have the highest stock levels since 2014. That’s a recipe for a much busier market in the final few months of the year, and most likely further house price growth.
“While there’s no base rate decision in October, the markets continue to expect at least one more cut before the end of the year. We saw activity pick up after the first base rate cut in four years, and a second cut will only further boost interest among buyers, as mortgage rates become more attractive.
“With the Budget on the horizon, there is a great opportunity for the Government to take real action in supporting the next generation of homebuyers. The ambition to deliver greater levels of housebuying is welcome, but it is unlikely to be enough on its own and lenders have a role to play too. Fresh thinking is needed in order to provide would-be buyers with a better chance of getting onto, or moving up, the housing ladder.”
Lomond CEO, Ed Phillips, commented: “A sixth consecutive month of positive house price growth demonstrates that the UK property market is very much heading in the right direction, boosted by a growing level of buyer confidence and an increased willingness to transact.
Whilst interest rates remain a factor, we’re likely to see further cuts before the year is out and this will only strengthen the momentum that has been building across the market in 2024.”
Nathan Emerson, CEO of Propertymark comments: “It is extremely upbeat to see the year continue with consistent growth. The overall performance of the housing market remains a key indicator of wider economic health, and it’s encouraging to see more people are demonstrating they have the confidence and affordability to approach the buying and selling process. There are still sizeable challenges ahead to ensure long term stability within the marketplace, especially on the back of an ever-growing population. It would be encouraging to see indications that the upskilling required to deliver the near two million homes promised across this parliamentary term is underway to ensure an adequate supply is under construction to meet the current levels of demand.”
Director of Benham and Reeves, Marc von Grundherr, commented: “Summer may have come and gone, but the green shoots of increased buyer activity that have been sprouting for much of the year are now starting to blossom into robust transaction volumes and consistently positive rates of house price growth.
“Whilst we’re unlikely to see any sales market incentives delivered in this month’s Autumn Statement, the housing market is likely to march on undeterred and we’re set for a very strong end to the year, despite the usual seasonal lull that comes with the Christmas period.”
CEO of Yopa, Verona Frankish, commented: “August brought the first interest rate cut in over four years and it’s clear that this boost to buyer sentiment has had an almost immediate impact on the UK property market, with house prices rising notably throughout the month.
“Not only have we seen consistent improvements on a monthly basis, but this is the six month in a row that house prices have increased on an annual basis. This longer term metric is a far more reliable measure with respect to the returning health of the UK property market and bodes very well for the remainder of the year .”
Ben Nichols, Managing Director at RAW Capital Partners, said: “Today’s official data indicates that the market is benefitting from a more relaxed economic environment, which was instigated by the Bank of England’s recent rate cut. With another cut anticipated at the BoE’s meeting in November, it is clear that the market is now in a much more stable period compared to previous years, which should support further capital growth in the coming months.
“Admittedly, the upcoming Autumn Budget adds complexity, with rumours of tax and regulatory reforms dominating the property press at present. However, it’s important to remember that the core fundamentals of the market — strong demand and limited supply — remain intact. Therefore, we do not expect any significant slowdown in activity following Rachel Reeves’ speech, as the outlook for the BoE’s base rate should have a greater influence on people’s plans. Under these conditions, the growth trajectory should persist, providing some enticing opportunities for investors, brokers, and lenders.
“As the market continues to gain momentum, speed and flexibility will be crucial for success. Consequently, brokers must partner with lenders who can act swiftly to help investors and homebuyers navigate the recovering market with confidence as the BoE continues to cut the base rate.”
Paresh Raja, CEO of Market Financial Solutions, said: “It’s been a day of positive news. Inflation falling under the Bank of England 2% target for the first time in three years makes a base rate cut in three weeks’ time all the more likely. Add to that the latest House Price Index from the ONS, which underlines that property prices continue to rise in the UK, and it is clear that, economically speaking, the country has turned a corner over the past six months.
“The upcoming Budget is the cloud that hangs overhead though. Speculation is rife concerning everything from capital gains tax and inheritance tax through to planning reforms and regulation within the buy-to-let sector. Once the Chancellor has delivered her fiscal statement, the challenge will be for lenders and brokers to assist borrowers in understanding the implications, and then adapting as necessary to ensure the property market can continue the positive growth we’ve seen so far in 2024.”
