ONS Private Rent and House Prices & Inflation data comment from Atom bank

17 July 2024

Richard Harrison, Head of Mortgages at Atom bank, comments:

“The fact that the ONS has now reported three months of straight house price increases is a good indication of the growing confidence in the market. This data predates the calling of the general election, however, which may have had a temporary effect on buyer demand and with it house price movements.

“The general election inevitably brought some uncertainty to the market, but the fact that we had such a definitive result means that some sellers and buyers will feel more comfortable pushing on with plans. There may also be some encouragement from the new government’s proposed Freedom to Buy permanent mortgage guarantee scheme, which is aimed at providing more options for buyers with small deposits. We have long been a champion of such buyers, focusing on delivering competitive rates for those with smaller deposits, but more choice would be welcome.

“Eyes will now turn to the Bank of England, and when it will look to start reducing bank base rate, as reduced rates will also serve to boost buyer confidence. With inflation continuing to move in the right direction, it’s simply a question of when, not if.