The last year has been one of the most stable for the housing market in the last decade, according to Halifax head of mortgages Amanda Bryden.
Commenting on the release of the latest Halifax House Price Index, which showed very little change in house prices (up £139 since October), Bryden said the consistency in prices reflects a steady market.
She added:
“Even with the changes to stamp duty back in spring and some uncertainty ahead of the autumn budget, property values have remained steady.”
While Bryden acknowledged slower growth may disappoint homeowners, she said first-time buyers are benefitting from market conditions.
“Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.”
However, Propertymark CEO Nathan Emerson said even with improved conditions, home ownership is still out of reach for many.
“While stable house prices suggest the UK housing market is adapting to ongoing political and economic uncertainty, they are still unaffordable for many aspiring buyers, especially with annual regular pay growth at just 0.5 per cent, according to recent data.”
Iain McKenzie, CEO of The Guild of Property Professionals, agreed the figures from Halifax reflect a ‘remarkably steady’ housing market.
“While annual growth has slowed, this is largely a reflection of the strong price inflation we saw at the same point last year rather than a sign of any fundamental weakness today,” he explained.
“What continues to shape conditions on the ground is the higher supply of homes on the market compared to last year. Buyers have more choice than they’ve had in years, and that increase in supply is naturally keeping a lid on price growth in the short term. We may see some further softening over the winter, but the broader outlook remains reassuring.”
With speculation around property related tax reforms prompting an earlier than usual seasonal slowdown, McKenzie expects to see buyers and sellers return to the market with renewed confidence.
“All eyes are on the upcoming interest rate announcement,” he added.
“If the Bank of England moves to reduce the rate later this month, that would provide a welcome boost to market sentiment heading into the key spring 2026 selling season.”
The Planning and Infrastructure Bill could also impact the market, Emerson said.
“If the Planning and Infrastructure Bill passes its final parliamentary stages on Monday and becomes law before Christmas, it should boost the supply of new homes in England and help moderate prices over the longer term, alongside the devolved administrations’ own building targets.”
