ONS House Price Index comment

Richard Harrison, Head of Mortgages, Atom bank comments:

“There are signs that house price falls are starting to slow, with January’s figures from the Office for National Statistics (ONS) showing house prices fell by just 0.6% in the twelve months to January.

Ongoing economic pressures and affordability constraints at the start of the year meant that buyer confidence did not fully return to the housing market.

Looking ahead, while the jury is still out on whether we will see further house prices fall in Q2, the news last week that the UK economy returned to growth in January, should in part, help boost buyer confidence. News this morning that inflation is falling faster than expected will also be well received, increasing expectations of base rate cuts and lower mortgage rates.

Affordability pressures remain however, with Moneyfacts figures showing that mortgage rates in March started to creep up again and the average shelf-life of a mortgage product dropped to just 15 days.

As the mortgage market picks up pace, Atom bank remains committed to supporting brokers and their clients, with service remaining our key focus.”

Published: 20 March 2024