House price growth experienced a slight deceleration in January, however, the year-on-year growth remained strong despite increased interest rates.
The Nationwide House Price Index reported that the annual rate of house price growth slowed to 4.1 per cent in January, compared with 4.7 per cent in December, as reported by .
After accounting for seasonal effects, house prices saw a month-on-month increase of 0.1 per cent. "The first half of the month was a bit slow but it has turned out to be a busier January than normal," commented Amy Reynolds, head of sales at Richmond estate agency Antony Roberts.
READ MORE: {}
She added: "The stamp duty holiday has helped, with an increase in sales agreed in those chains where there is a first-time buyer keen to take advantage of the discount before the end of March."
From April 1, first-time buyers will be subject to the same stamp duty as everyone else. "The value of a stamp duty incentive to first-time buyers is instant – it is real cash in their pockets, allowing someone to buy who otherwise might not be able to and this impacts those trying to move because they need a first-time buyer at the bottom of the chain in order for the second stepper to move on," Reynolds explained.
Robert Gardner, Nationwide’s Chief Economist, noted that the housing market continues to "show resilience despite ongoing affordability pressures."
"A potential buyer earning the average 海角视频 income and purchasing a typical first-time buyer property with a 20 per cent deposit would face a monthly mortgage payment equivalent to 36 per cent of their take-home pay – significantly above the long-term average of 30 per cent," Gardner explained.
He also noted that house prices remain high in relation to average earnings, a problem exacerbated by the record increase in rents in recent years, which combined with the cost-of-living crisis has "hampered the ability of many in the private rented sector to save."
Most Read
Despite these challenges, the latest English Housing Survey from the Ministry of Housing, Communities & Local Government (MHCLG) indicated that homeownership rate remained stable in 2024 at 65 per cent.
However, Mark Harris, chief executive of mortgage broker SPF Private Clients, suggested that the outlook for borrowers is "looking up", with anticipated interest rate cuts expected to result in lower mortgages.
"With some forecasters expecting a handful of rate reductions this year, it is encouraging news for those thinking of buying a property or refinancing," Harris said.