Some estate professionals warn that buyer interest is beginning to fade, and that home seller will eventually need to change their pricing expectations.
According to fresh data, the annual house price rise in the United Kingdom advanced to 11 percent in July, up from 10.7 percent in June.
According to the Nationwide Building Society, house prices rose by 0.1% month-over-month, marking the twelfth consecutive monthly increase.
In July, the average home price hit $271,209.
Robert Gardner, the chief economist of Nationwide, stated that the housing market has been unexpectedly robust thus far, given the strains on household budgets and the record-low consumer confidence.
Inflation is projected to hit double digits by the end of the year, which will continue to exert pressure on household budgets in the following quarters.
Director of the London real estate agency Benham and Reeves, Marc von Grundherr, stated: “You would think that the appetite of the nation’s homebuyers would have waned after they gorged themselves on mortgage affordability and stamp duty cuts during the pandemic.
“This is not the case, and even a series of consecutive interest rate hikes have failed to dampen their appetites as they continue to fill their plates, driving property prices to all-time highs.
With the bricks-and-mortar buffet staying understocked in terms of the number of available homes, we can anticipate that real estate prices will continue healthy despite an uncertain economic background.
‘Market momentum remains unwavering
The managing director of Barrows and Forrester, James Forrester, added: “Despite a protracted period of Brexit uncertainty, a worldwide pandemic, rising inflation, and the most incompetent prime minister in living memory, market momentum remains unabated.
It appears that nothing short of the end of the world could drive the real estate market to its knees.
Chris Hodgkinson, managing director of HBB Solutions, stated: “While property values remain sky-high, sellers would be wise to wear their seatbelts, as we are likely to have a period of increased volatility before the end of the year.
Buyer demand levels are already beginning to wane, and when the well runs dry, home sellers will have to adjust their asking prices to secure a sale, as a perfect storm of rising mortgage costs, record inflation levels, and the high cost of living exerts pressure on the UK real estate market.
