You are here: cherry > Press releases for September 2023 > Richard Harrison, Head of Mortgages, Atom bank comments on the latest ONS House Price Index:
Back

Richard Harrison, Head of Mortgages, Atom bank comments on the latest ONS House Price Index:

20 September 2023

“Today’s data shows house prices are rising more slowly, with an annual increase of 0.6%. This change was somewhat anticipated when you consider the sharp rise in borrowing costs customers have faced over the summer months, which has led to purchasing activity falling considerably below the levels seen last year. This is particularly true of London, which has seen house prices fall by 0.8% annually as customers face greater affordability challenges in the capital.

“Most commentators expect prices to remain suppressed over the short-term, but do not expect to see double digit falls on the basis that employment levels perform as expected.

“Looking more positively at the situation, moderately lower house prices coupled with on-going growth in wages could improve affordability for prospective buyers. In addition, mortgage pricing has been falling during September and could continue with inflation dropping faster than expected. That being said, borrowers should still get used to higher rates, with the base rate expected to remain higher for longer."