what's going on with their utility bills" - property experts' reaction

Posted by Elijah on September 15th, 2022

"The July data has been skewed by the Stamp Duty holiday and should be taken with a pinch of salt," says Andrew Montlake, managing director of UK-wide mortgage broker Coreco. In reality, the property market has been gradually cooling in recent months as the country has been gripped by an unprecedented cost of living crisis. We're also seeing valuers become more conservative as a result of the strong economic headwinds. With more rate hikes a foregone conclusion and the cost-of-living crisis expected to worsen as the year progresses, the Glasgow Estate Agent market is likely to see modest price growth between now and the spring. Higher mortgage rates and the enormous strain on household finances are also likely to result in a drop in demand in the coming months. However, as always, a lack of supply will support prices and prevent a sharp drop."

Imran Hussain, director of Harmony Financial Services in Nottingham:

"Anyone hoping for a massive drop in prices and a good deal will be disappointed." Though activity levels have moderated slightly, demand remains high. Surprisingly, activity may even pick up now that everyone knows what's going to happen with their utility bills for the next two years. Property price growth will likely slow in some areas of the country, but areas in high demand will always command a premium. Even though mortgage rates are rising, it is still cheaper to own than to rent in many cases."

Ross Boyd, founder of Dashly.com, an always-on mortgage comparison platform:

"England won the Rugby World Cup the last time annual price growth was this high, but the figures must be viewed in context, against the backdrop of changes to the Stamp Duty regime." The property market will face increasing pressure in the coming months, but prices are unlikely to fall due to a lack of available homes and a lack of new construction. Rather than a market collapse, expect modest or negligible price growth in the short term."

Edgar Rayo, chief economist at Finanze, a London-based finance broker:

"The housing market is already being battered by supply chain issues, which have driven up construction prices, while build-cost inflation continues to squeeze developers' margins." The fourth consecutive monthly drop in new buyer enquiries, according to The Royal Institution of Chartered Surveyors' (RICS) survey results released last week, adds to the anxiety. Given the painful cost of living that is hammering households' finances, as well as the government's withdrawal of the Help to Buy equity loan scheme, UK real estate builders have yet to see a rise in consumer confidence equal to pre-pandemic levels. They will face higher borrowing costs in the coming years as rising inflation forces the Bank of England to raise interest rates further before the end of the year. Threadneedle Street's additional interest rate hikes will eventually slow the surging growth in housing prices. This means that those planning to buy a home must act quickly in anticipation of higher interest rates in the coming months."