The latest Halifax data shows UK house prices in September rose 4.7% compared with a year ago – the strongest rate since November 2022, reflecting the resilience of the UK property sector, say commentators.
Tom Brown, managing director, Real Estate at Ingenious, said: “Today’s data shows that the resilience and appeal of the UK property sector persists. Though we have seen higher inflation and sticky borrowing rates, we welcome the BoE’s focus on rate cutting and what will hopefully be the start of the much needed falling rate cycle.
“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors.”
This is a trend that is not going away, he says. “However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading.
“In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
Daniel Austin, CEO and co-founder at ASK Partners, is equally as upbeat. “We are continuing to see a consistent month-on-month rise in house prices, which signals a potential upward trend for the remainder of the year.,” he says. “The market is showing strong signs of resilience, even amid broader uncertainties.
“Much anticipation surrounds Labour’s plans to stimulate the housing sector, particularly regarding the construction of new homes and unlocking the planning system. If effective initiatives are announced in the coming months, they could provide the market with an additional boost, driving further growth and confidence in the sector.
“In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate, we have seen values hit the bottom and confidence return. The market has picked up with opportunistic acquisitions of prime properties in prime locations.”
