12th
Dec 2022
A leading buy to let lender claims that many ‘savvy’ landlords will take the opportunity of buying more properties as falling house prices could make a ‘killing.’
Emma Cox, managing director of real estate at the lender, says: “Scepticism among buyers looks set to continue as the property market experiences its third consecutive month of declining house prices.
“The combined effects of double-digit inflation, alongside the UK’s slow march into recession is keeping many would-be first time buyers away from entering the market.
“However, the reluctance demonstrated by this group presents estate agents and landlords with greater opportunities to shift rental properties, particularly to younger individuals who are hesitant to make the transition from renting to homeownership in the current economic climate.
“With prices looking set to fall even further from the record levels experienced in the summer, and the effect of the mini-budget still being felt, we expect to see professional landlords and real estate investors capitalising on the availability of cheaper stock to expand their buy-to-let portfolios."
Her comments follows Halifax saying that house prices dropped by 2.3 per cent in a month and the average house price currently stands at £285,579, down from £292,406.
Although on the year prices did rise in November by 4.7 per cent but this had dropped from 8.2 per cent in October. Across all regions the rate of annual growth slowed down except for the North East, where there was a slight rise from 10.4 per cent to 10.5 per cent.
Kim Kinnaird, director of Halifax Mortgages, says: “While a market slowdown was expected given the known economic headwinds - and following such extensive house price inflation over the last few years (19 per cent since March 2020) - this month’s fall reflects the worst of the market volatility over recent months.
"Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.
"The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy - and more specifically the labour market - performs will be key in determining house prices changes in 2023."
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