Predicting market movements is a hazardous occupation and housing has confounded many of late.
Some might say that only a fool would attempt to predict future property prices in the current climate, though it is now safe to declare that “the market is resilient”.
Expected drops in house prices over recent years have failed to materialise but, make no mistake, we cannot be complacent.
The market is fairly positive and today’s interest rate cut will help that, but it remains extremely vulnerable.
The expert explained the market is fairly positive
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UK property investment is not immune to global fluctuations, as we have seen in recent days due to President Trump’s unique way of doing business.
The pro-business approach he takes should be helpful but unpredictability won’t entice investment that is so desperately needed.
It is too early to say what will happen: I am not sure anybody truly knows at this stage. But back to that keyword – resilient.
Current reality means that half of all first-time buyers need family handouts to scrape together a deposit, leaving many feeling that home ownership is increasingly a privilege for those with wealthier parents.
Yes, huge sections of society are priced out of the market and many people have little hope of ever owning a home.
Prices continue their upward journey, even if the pace of the climb has slowed recently.
Affordability is a cruel joke, with mortgage payments eating up 36 per cent of average take-home pay.
Yet, there is hope: January’s house price rise was a feeble 0.1 per cent and faster wage growth means that affordability is improving.
The Bank of England rate cut should further help with closing the chasm between ambition and reality. And yet, despite all logic, prices are still forecast to rise by up to four per cent.
Why? Because in an uncertain world, the appeal of bricks and mortar increases.
My prediction? The pace of house price growth is about to speed up – there, I said it.
Jonathan Rolande is a property expert from the National Association of Property Buyers
