Atom bank comments on ONS Private Rent and House Prices data

20 November 2024

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

“A recent spike in activity in the housing market has prompted this latest house price rise. Data from Rightmove shows that the number of sales is up by nearly a third compared to a year ago, while there has also been strong growth in buyers contacting estate agents about listed properties, which is up by 17%. The glaring imbalance between housing supply and the resurgent demand from would-be homeowners is only likely to push prices higher still as we head into 2025.

“Interest from buyers will be further buoyed by the latest base rate cut, however today’s sharp rise in inflation may temper the prospects of a further cut next month. For now, buyers will have to move quickly in order to secure deals - data from Moneyfacts shows that the number of products on offer, and their typical ‘shelf life’ before being withdrawn, have both dropped sharply.

“This increased sense of urgency will be accelerated further by the lowering of the stamp duty bands which apply to first-time buyers from March 2025, as would-be purchasers attempt to beat that deadline. This is likely to prompt increased completion levels in Q1, with the competition driving house prices up. First-time buyers with modest deposits may see the prospect of homeownership become more difficult as a result, which means lenders need to step up and deliver competitive, high LTV products. The housing ladder relies on people being able to access the first rung.”