Could the reduction in property price inflation kick start conveyancing in the New Year?

Could the reduction in property price inflation kick start conveyancing in the New Year?

The Office for National Statistics (ONS) House Price Index for October 2014 was released this morning. Key findings for the data include:

  • UK house price increase slows, with the level reducing to 10.4% for the year to October 2014, compared to 12.1% for the year to September 2014.
  • England most affected by house price inflation at 10.8%, with Wales following at 5.7%, and both Scotland and Northern Ireland reaching the same level at 4.9%.
  • London remains the most competitive market with the greatest house price growth.
  • Excluding London and the South East, UK house prices increased by 6.7% in the year to October 2014.
  • First time buyer property prices were 12% higher compared to the same period in 2013.
  • Existing home owner purchasers saw prices increase by 9.7% compared to last year.

Experts in the property industry think these latest figures could mean a more stable market come 2015, and with the recent stamp duty reform, this could lead to a boost in potential buyers.

Andy Knee, Chief Executive of LMS, comments:

“October offered some respite for first-time buyers who saw prices rise at a lower rate than the previous month. There is hope this trend continues into the New Year, supported by Help to Buy and other schemes, such as the latest government initiative to help first-time buyers get first preference as well as a discount on 100,000 new homes.

“The key question everyone will be asking of the market is whether this decline in rate of growth is a seasonal stupor or the first baby steps towards a healthier, more stable market. However, let’s look at the year-end figures as a pause for breath while we gear towards an exciting new year when we’ll see the housing market respond to everything heaped on its plate come election year: the home buyer and seller response to the stamp duty overhaul; the impact of a base rate rise; the second more mature year post the MMR.”

Peter Rollings, CEO of Marsh & Parsons, comments:

“Property price growth has quietened from the roar that was reverberating through the market earlier this year and with values notching up just 0.1% in the month to October 2014 they are on an even keel.  But price growth is still steadily banging the drum on an annual basis – with London leading the beat.  Buyers here are benefiting from greater choice of property available for sale, favourable lending conditions, and more pragmatic asking prices, keeping activity levels pulsing.

“While the capital had a running start at the housing recovery, the Chancellor’s stamp duty revisions may extend a helping hand to aspiring homeowners in other regions, by lowering some of the up-front hurdles of buying a property. Increasingly animated demand at the bottom of the market will enable more sellers to make their next move up the property ladder, and this boosted confidence will grease the wheels of growth into 2015.”

 

Georgia Owen

Georgia is the Content Executive and will be your primary contact when submitting your latest news. While studying for an LLB at the University of Liverpool, Georgia gained experience working within retail, as well as social media management. She later went on to work for a local newspaper, before starting at Today’s Conveyancer.

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