The results of the Nationwide House Price Index have just been published and Murray Smith, the Managing Director of SiteSales Property Group, a leading residential property sales and development consultancy in London and the SouthEast, has decided to comment on it.
“A slip in growth is due to stagnation in the mid-upper market (i.e. transactions that do proceed are at a lower price point hence the annual price indications are easing) as those in a suitable home have long since packed away their aspiration along with the summer beach wear,” he said.
The Index found out that mortgage approvals are down by 8%, “a notable turndown and one that needs keeping a close eye on”. Nationwide have also published statistics regarding the UK household net wealth, which finds that the entire UK housing privately owned stock is geared at just under 20%. “That is why for the foreseeable future parental funding will keep the general UK market propped up with only marginal easing moving forward,” said Murray.
“Parental funding coupled with Help to Buy are the sturdy legs upon which the Colossus of the housing market sits,” explained Smith. “Help to Buy itself, aligned to new build as it is, generates cul-de-sac transactions that do nothing to generate movement up through the middle market, creating stagnation which in turn is reflected in reports such as this. On the ground, we are still able to maintain, even lift in some locations, values where Help to Buy is available. That doesn’t feel right. It’s good for us, good for sales, even better for the PLCs but masks the true picture. Colossus is not about to tumble but turmoil awaits should those legs begin to wobble.”
SiteSales Property Group delivers successful solutions on housing schemes ranging in size from ten to over 1,000 new homes, offering its services to developers, housing associations, local authorities, and registered charities.