ONS House Price Index Comment - Atom bank
14 February 2024
Please find below Atom's statement regarding this morning's ONS House Price Index:
Richard Harrison, Head of Mortgages, Atom bank comments: “The news of a 1.4 % decrease in house prices in December will come as little surprise.
A seasonal dip in asking prices is always expected in the lead-up to Christmas, and the final month of 2023 saw vendors becoming increasingly competitive, reducing their pricing in the hope of closing a sale before the New Year.
Likewise, higher mortgage rates and stretched affordability for some buyers may have motivated them to offer below the asking price, in a bid to offset the impact of higher borrowing costs.
More recent indicators point to increasing house prices as confidence in the market improves, and we should see this reflected in future ONS data. The festive period was in fact a turning point, with more than 10,000 new properties coming to the market on Boxing Day - the biggest number of new sellers in one day since 2011, according to Rightmove.
This increased activity was also met by heightened demand, with new buyer enquiries at their strongest in almost two years in January, the latest figures from the Royal Institution of Chartered Surveyors (RICS) show.
Brokers have hit the ground running this year and while we have seen no movement in the base rate, lender competition has ensured the average two-year fixed rate continues to edge closer to 5%.
A surprise uptick in business can catch lenders off guard, leading to a slip in service, and we have already seen a number of lenders pulling some of their best buy products to manage volume and protect service levels.
With all the signs pointing to increased demand continuing, swift service will be key to delivering a good customer experience in 2024. Atom bank is committed to ensuring that speed and service remain our primary focuses as we head into what could be a busy year ahead.”
