Copy article

Nationwide July 24 House Price Index

ended 01. August 2024

UK house prices increased by 0.3% month on month in July, after taking account of seasonal effects, according to the Nationwide. This resulted in a slight pickup in the annual rate of house price growth from 1.5% in June, to 2.1% in July - the fastest pace since December 2022. Newspage asked property and mortgage experts for their views, below.

7 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Rohit KohliVerified
Director at The Mortgage Stop
Demand has been steadily growing through this year but supply remains constrained, which is pushing up prices. Buyers are starting to have conversations about going above asking prices and, if rates are cut today, we can expect demand to increase further and prices to continue to rise. However, we are warning buyers who do go above asking price that valuers have not yet caught up and we are still seeing them deliver significant down valuations, which is affecting mortgages.
Star Quote
Copy

Editor
Chris BarryVerified
Director at Thomas Legal
We saw new enquiries jump 80% in July compared to the same month last year. New enquiries have been at a record high for us since the begining of the spring and have not slowed, even through the General Election. The increased demand seems to be driven by the quiet year that was 2023, a time when the trajectory of interest rates was still uncertain. The Bank of England holding the base rate with a view to reducing today or in the autumn has made people more confident that taking on a new or larger mortgage now is likely to see them paying the same or less in the future.
Star Quote
Copy

Dr Konrad RotthegeVerified
Co-founder at Conveyo
The property market was resilient in July, defying traditional seasonal trends, with overall demand remaining robust. The ongoing reduction in mortgage rates has undoubtedly stimulated demand, but affordability remains a significant challenge, particularly for first-time buyers. The house price crash some predicted simply didn't materialise and for many prices are still challenging. A potential base rate cut could inject further energy into the market, with buyers likely becoming more active. Of course, broader economic conditions will also play a role. Currently, the market appears balanced, with neither buyers nor sellers holding significant sway. A rate cut could tip the scales slightly in favour of sellers, increasing competition for properties. Despite the potential for lower mortgage rates, higher living costs and limited housing supply continue to constrain market activity.
Copy

Editor
Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
The property market is less in survival mode than revival mode. We witnessed a remarkable resurgence in July, with a staggering increase in purchase enquiries, signalling renewed buyer enthusiasm that is beyond being a mere phase. As the Bank of England prepares for a possible base rate cut on Thursday, the market is poised for a potential frenzy. This anticipated move could spark continued demand, driving prices higher and shifting the advantage firmly back to sellers. With mortgage rates steadily declining, buyers are hitting the market in droves, eager to seize the opportunity. It's good to see a once sluggish market is now brimming with energy and potential.
Copy

Editor
Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages
The property market once again showed its resilience in July and that is ahead of a potential base rate cut. House prices remain steady, as sellers know that when the base rate cuts happen and cheaper borrowing is available the number of potential buyers will multiply and potentially switch the dynamic to a sellers' market. Mortgage rates have been coming down for well over a month now but people shouldn't expect them to tumble rapidly when the base rate is cut, as that has largely been priced in. Modest improvements, which we have been seeing, are more likely.
Copy

Editor
Justin MoyVerified
Managing Director at EHF Mortgages
These figures show how resilient the UK property market is, even given the high inflation and mortgage rate environment of the past two years. Demand and confidence are certainly improving, with borrowers accepting that rates will be higher for longer, but with one eye on the future for changes to Stamp Duty and CGT, which may make it more expensive to move. A stampede of landlords may choose to sell now.
Copy

Editor
Craig FishVerified
Director at Lodestone Mortgages
Mortgage rates dropping, a base rate cut imminent, and house prices increasing are all signs that the market is changing. The housing market has survived its biggest challenge for quite some time, and is now waking up from its slumber. We have seen a resurgence in buyer enquiries recently and those buyers need to beware as the tables are about to turn and control will be back in the hands of sellers. Avoid disappointment and act quickly.