Upmarket agent predicts ‘gradual reset’ of the housing market

Fine & Country is predicting the impending housing market slowdown will be gradual.

Nicky Stevenson, managing director of Fine & Country UK described it as a "reset of the property market" and highlighted the publication of the 2021 Census - that underlines the level of population growth – as a sign of sustained demand.

Amid rising interest rates and the cost of living crisis, Stevenson said: “Any reset of the property market is expected to be slow and gradual as demand for property remains considerably above pre-pandemic levels.”

She adds that the housing market continues to defy the wider economic rhetoric, but signs are emerging that the market is starting to reset.
 

She said: “At just 0.1% in May, Hometrack reported month-on-month price growth fell to its lowest rate since December 2019, while the pace of price growth for newly-marketed properties continues to slow.

“Nationwide reported annual house price growth in June is 10.7%, the fourth month in succession of price growth moderation, while mortgage approvals in both April and May have pared back to pre-pandemic levels. 

“With the volume of new supply to the market edging upwards and rising mortgage rates set to cause a greater degree of price sensitivity in the market in coming months, more balance is returning.”

Stevenson said demand is holding firm and added that 2021 Census population data shows there will always be people needing to buy and sell.

She said: “Data from the census indicates that the east of England and south west England have proportionally seen the most significant increases in population, with rises of 8.3% and 7.8% respectively. Unsurprisingly, they also top the league for household growth. 

“By size of its population, the south east is the largest region with 9.3m, followed by London with 8.8m. These two regions account for 30% of the total population of England and Wales.”