Thanks to The Intermediary, This is Money and The Guardian for sharing my thoughts on the latest house price data.
House prices fell 1.8% in the last year. The ‘problem’ for many is that house prices are highly emotive. A 1.8% nominal house price fall (which of course reflects a much higher real fall) is expected and deliberate.
Firstly, higher interest rates are designed to reduce demand and therefore the rate of price increases. Secondly, higher interest rates have a stronger impact on ‘affordability’ than house prices themselves do. So, the plan of higher interest rates is working as a tool to reduce inflation in the housing market.
In reality, this is a time of opportunity for those looking to buy at more realistic prices as competition is much reduced.
The investors we work with are picking up deals through auctions, from the major portals and from contacts. The best deals to be had are quality properties in low risk, high growth geographies where the gap between asking prices and offers accepted (the bid-ask spread) is widest because vendors need to sell.
Full articles linked below:
The Intermediary https://theintermediary.co.uk/2023/12/uk-house-prices-drop-1-8-in-2023-northern-ireland-and-scotland-see-rises/
This is Money https://www.thisismoney.co.uk/money/mortgageshome/article-12909231/House-prices-fell-1-8-2023-says-Nationwide.html
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