Richard Harrison, Head of Mortgages, Atom bank comments on the latest ONS House Price Index:
18 October 2023
“Prices continue to rise more slowly, with today’s data reflecting the challenging time the property market has experienced so far in 2023, with rising rates negatively impacting how much buyers are able to borrow as well as customer confidence. As a result, activity in the market has remained subdued and the latest Bank of England approval figures point to a marked reduction in purchase activity, with August’s numbers some 37% lower than the same period last year. This is particularly true in the South of England, which has seen house prices fall as people face ongoing affordability challenges.
“However, there is some cause for cautious optimism. Softening prices present an opportunity for first-time buyers, and many experts now think that Base Rate has reached its peak, with headline mortgage pricing falling over the last 12 weeks. This is unlikely to stimulate an immediate dramatic bounce in activity and prices, but it does reduce the potential of a more pronounced reduction in prices as had previously been speculated by some commentators."
