Jackson-Stops comments on ONS House Price Index July 2023

Nick Leeming, Chairman of Jackson-Stops, comments on the publication of the ONS House Price Index July 2023.

“With house prices holding firm month on month, this poses a welcomed period of stability for the market.

“On the eve of another possible interest rate rise to 5.5%, it’s easy to suggest that the sun has continued to set on the property market for this year, but the hope is that this rise marks the last in the current cycle.

“Wider economic headwinds are starting to loosen.

“Inflation dropped to its lowest level in July since February 2022, and mortgage rates continue to fall for the time being – sub-5% for the first time in a year.

“Meanwhile, homebuyers are still out in force driven by lifestyle and need.

“As supply increases, now is the time when sensible pricing will prevail.

“Pricing that reflects the conditions of the local market and buyers expectations will put sellers in the best position in order to achieve a sale.

“While this isn’t a full tilt from a sellers’ to a buyers’ market, the frenzied level of viewings and offers that we saw during the pandemic is not the environment we are now in.

“Dominant trends we’re seeing across our network, irrespective of economic environment, include older homeowners who continue to downsize in force, young families looking for better access to schools, and London buyers pivoting from urban to country life.

“Any suggestion that a handbrake is being applied to transactions is unfair, with much of the mid to upper markets remaining active, and in a position of strength.

“Hotspots for our offices where both applicants and instructions are up include Dorking, Exeter, Woburn and Woking.”

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