Skipton Building Society comments on the publication of latest ONS house price figures

Charlotte Harrison, Head of Mortgage Products at Skipton Building Society, comments on the publication of the ONS house price figures today (18 May), and the impact on first-time buyers and sales of new-build homes.

Skipton Building Society owns Connells Group, the largest estate agency network in the UK, which affords Skipton a unique position and one the business is keen to maximise to help first-time buyers.

Charlotte Harrison, in reaction to the figures, said:

“This month’s ONS house price data suggests that the gloomy macroeconomic outlook hasn’t yet had an impact on the property market.

“Over the past few months, the property market has continued to boom, and given the low levels of housing stock buyers are, in some instances, paying over the odds and asking price.

“This isn’t good news for first-time buyers; low stock means they are more prone to getting gazumped by those with bigger budgets and increasing interest rates means finances are stretched further.

“Rising interest rates and growing inflation has also led many homeowners to switch their mortgage sooner than they would have to ensure they lock in a lower fixed rate in anticipation of further increases, meaning that we are still seeing a very busy mortgage market.”

Charlotte gave advice on what’s coming next:

“One trend we expect to see this year is yet more demand for new-build homes.

“The high energy efficiency ratings of new-build homes are likely making these properties more attractive to buyers who are eager to insulate themselves from rising energy prices at a time when family finances are stretched.

“While buyers of new-build homes pay more up front than those buying other properties, £6,070 on average, we expect that house-hunters will be increasingly weighing this up against the longer-term cost savings associated with new-builds.”

Kindly shared by Skipton Building Society

Main article photo courtesy of Pixabay