Atom bank comments on ONS Private Rent and House Price data

19 February 2025

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

“The latest ONS figures underline what a strong year 2024 was for house price growth, with prices rising at their fastest rate since February 2023. Even with the unwelcome news of resurgent inflation, it is unlikely that 2025 will be much different. Recent data out from Rightmove suggests the gap between supply and demand has narrowed, but it’s still there, pushing prices ever higher. Record high house prices have become the norm, and I expect this trend to continue.

“Those hoping to purchase a home will have welcomed the cut to base rate, a move which has already fed through into lower mortgage rates from many lenders. While today’s inflation news may reduce the chance of a cut in March, the expectation of additional cuts to come this year, coupled with the increasing availability of higher LTV mortgages, will be further encouragement for those buyers.

“With house prices on the ascent, lenders who are serious about helping first-time buyers have to ensure they are delivering for those with smaller deposits. Otherwise the market will become even more reliant on the ‘Bank of Mum and Dad’, freezing out those who cannot turn to well-off loved ones.”