Atom bank comments on ONS Private Rent and House Prices data

14 August 2024

David Castling, head of intermediary distribution at Atom bank, comments:

“The property market appears to be in a good place. The ONS has reported that prices are continuing to rise, with improving activity levels clearly a factor. Rightmove’s latest research found that the number of agreed sales are up by around 15% on a year ago, for example, while the Bank of England’s decision to cut the Base Rate should only add to that sense of momentum, with more hopeful homeowners pursuing purchases as lenders begin to drop mortgage rates.

“While rising house prices are a sign of economic improvement, they present real challenges to would-be homebuyers, particularly first-time buyers. Saving a deposit has only become more difficult as house prices and outgoings have grown, while loan-to-income caps may mean borrowers miss out on a property even if they are well placed to meet the repayments.

“It’s vital for lenders to deliver funding that addresses the actual needs of these borrowers through high LTV products and more generous LTI caps so that all potential first-time buyers have a chance of getting onto the housing ladder, even if they cannot call on financial help from loved ones.”