Comments from MFS
Paresh Raja, CEO of bridging specialist MFS, comments on Nationwide’s latest House Price Index.
“Nationwide’s House Price Index comes at a critical time for the UK property market as it adjusts to the first rise in interest rates in over a decade. Building on the growth experienced in September and October, house prices have risen by 2.5%. For homeowners and real estate investors, this is positive news demonstrating the resilience of property as a secured asset in times of economic shifts.”
“While house prices may be rising, the rate of actual price growth has been stalling, reflecting the market’s current shortage of affordable housing. With inflation outpacing price growth, a significant number of prospective homebuyers are not able to act on their property intentions.”
Paresh concludes: “In part, this explains why the Government has removed stamp duty for first time homebuyers; alleviating some of the financial burden affecting entry-level investors so that more people are able to get their foot on the property ladder. It will be interesting to see how this affects property prices over the coming months.”