The property industry’s reaction on the latest UK House Price Index.
UK House Price Growth – Nationally & North West
Managing Director of Ascend Properties, Ged McPartlin, commented:
“A 7.5% annual rate of UK house price growth in January is pretty monumental given the industry is usually dusting itself off from the Christmas break and yet to make it out of second gear.
With transactions also up 24%, it’s clear that there’s been no let-up for the industry where the turbo-charged levels of buyer demand seen since the introduction of the stamp duty holiday are concerned. With an extension now in place until September for most, we can expect these manic market conditions to remain and house price growth to continue upwards for most, if not the remainder of this year.
It’s also reassuring to see that it’s not just London and the South East benefitting, with the North West leading the way with the strongest levels of price growth seen on an annual basis. Double-digit house price growth of 12% is huge and really demonstrates the economic momentum building in the region.”
Nationally – Size And Space
CEO of Keller Williams UK, Ben Taylor, commented:
“It’s clear that bigger homes are still the driving force behind buoyant house price growth, as detached and semi-detached homes are seeing far greater rates of annual growth.
While we have an exit plan out of lockdown, you will forgive many for preempting another stint at some point and so buyers are still prioritising more house, outdoor space and greener surroundings when looking to buy.
Not only are these property types more expensive, but buyers and acting with that little bit more in the bank due to a stamp duty saving and that’s why we’ve seen such consistent increases in house price.”
Nationally – Existing vs FTBs
Managing Director of Barrows and Forrester, James Forrester, commented:
“The reason for such a sustained boost to market health is simple. While many government initiatives in the past have only helped boost first-time buyers, the latest reprieve on stamp duty has benefitted buyers in all areas of the market.
As a result, the mad scramble to purchase has been seen across all price tiers and all property types, helping to push the market to record heights. In fact, owner occupiers are better placed to take advantage of a stamp duty saving and so price growth across this segment of the market is far exceeding that of first-time buyers.
Director of Benham and Reeves, Marc von Grundherr, commented:
“We’re starting to see a strong reversal in the fortunes of the London property market and this isn’t just refined to the outer boroughs offering larger homes with outdoor space. Momentum is certainly growing across central boroughs and in fact, a number of inner London postcodes have seen the most transactions take place since we first entered lockdown.
Despite a soon to be implemented stamp duty surcharge for foreign buyers, we expect this segment of buyers to be pivotal in the revival of the London market in the coming months as the world reopens.”
Founder and Managing Director of BuildScan, Harry Yates, commented:
“We’ve seen a monumental effort by the housebuilding sector to deliver more new homes to a market under siege by record levels of buyer demand. It’s clear that the delivery of these homes is the driving force behind current market health with new builds enjoying a nine per cent annual uplift to just six per cent across the existing market.
This is certain to continue as buyers see savings in the form of a stamp duty holiday and an increase in affordability via 95% mortgage products, allowing them to spend just that little bit more to secure their dream home. Of course, those opting for a new build are also looking at a far safer investment, with the sector holding its value to a much greater extent.”
CEO of Enness Global Mortgages, Islay Robinson, commented:
“Homebuyer excitement has been supercharged of late due to the extension of the stamp duty holiday and the introduction of 95% mortgages. We’ve also seen some rather questionable offerings enter the market in the way of 40-year fixed-term products.
While it may seem as though it’s now or never for buyers to get on the ladder, there will be life after these initiatives end and so it’s important to purchase with a straight head, at a realistic price point for your personal situation, and via a product and terms that you can afford.”
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