The industry reacts to the publication of the Rightmove House Price Index

Following the publication of the Rightmove House Price Index, various members of parts of the property industry react and comment.

Highlights of the Index report:
  • Average price of property coming to market falls by 0.9% (-£2,887) this month, with some new sellers still hoping to tempt buyers and squeeze in a sale before the stamp duty holiday ends
  • New buyers unlikely to beat the deadline as average time to complete a purchase is now over four months
  • Logjam update:mammoth 613,000 sold subject to contract properties still awaiting legal completion, with Rightmove projecting around 100,000 will face an unexpected tax bill as they miss the 31st March cut-off
  • Nevertheless, visits to Rightmove are up by 33%, the number of buyers contacting agents is up by 12% and the number of sales agreed is up by 9% for January so far compared to the prior year
  • Despite temporary market closures in 2020, people’s housing needs meant the number of sales agreed was up by 10% for the whole year versus 2019
  • More agents are now offering online viewings to help people find their next home safely, with home-hunters encouraged to shortlist properties before choosing which ones to go and see in person
Founder and Managing Director of Yes Homebuyers, Matthew Cooper, commented:

“Many buyers will still be entering the market this side of the festive period with hopes of securing a stamp duty holiday discount. The unfortunate reality is that they have more chance of seeing Matt Hancock answer a question with a straight answer than they do completing on a sale with current market delays.

“To describe the current logjam as mammoth is no exaggeration and while you could argue it’s a great problem to have, homebuyers stuck in the property market waiting room will be desperately hoping their ticket number is called prior to the end of March.”

Director of Benham and Reeves, Marc von Grundherr, commented:

“A marginal decline in asking price will no doubt be jumped upon by those sporting their tin hats as signs of the imminent demise of the housing market.

“However, those actually in the trenches will tell you that this is far from the case. Enquiry levels remain robust, properties continue to be snapped up at an alarming rate and the housing market fuel tank is brimming. 

“If you believe this current rate of market momentum is going to evaporate overnight come 31st March, you’re going to be sorely disappointed.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“We’re a nation of aspirational buyers and so while the opportunity of a stamp duty saving has acted as the tantalising cherry on top, its expiry will not bring about a reversal in the current trajectory of the UK property market. 

“Of course, there will be some natural realignment come the end of March. However, the end of the stamp duty holiday will act as more of a speed bump to slow the market to an appropriate speed, rather than a red light that will bring it to a halt completely.”

CEO of Keller Williams UK, Ben Taylor, commented:

“This latest reduction in asking has essentially signalled the end of the homebuyer hysteria spurred by the stamp duty holiday. Previously, sellers have chanced their arm with higher price expectations in the knowledge that buyers have that little bit more in their purse to negotiate with.

“With many now realising that the chances of completing before the March deadline are slim, this is no longer the case and we’re seeing a gradual return to normality where both seller expectation and homebuyer budgets are concerned. 

“However, this decline in asking price should be a viewed as a gradual downshifting of the gears and is far more preferable than an abrupt crash landing come the end of March.” 

Group CEO of Enness Global Mortgages, Islay Robinson, commented:

“The current market outlook is a positive one however we’re now starting to see lenders become far stricter where their lending criteria is concerned. This retraction has been largely focussed on those with greater financial uncertainty due to the heavy reliance on commission or those classed as self-employed.

“This will, of course, impact demand and the level of buyers looking to transact. However, given current backlogs, this is arguably a positive and will enable the regular market to catch its breath.” 

 

Main article photograph courtesy of Pixabay