"Not only are first-time buyers at risk of being priced out of the market altogether, but renters are facing steeper rent and household bills this year"
This took the average price of a property in the UK to £292,118
James Briggs, head of personal finance intermediary sales at specialist lender Together, said:
“House prices crept up again in July by 15.5%, despite the surrounding economic and political landscape in the UK. However, many signs suggest the housing market will cool in the coming months.
“With the challenging economic outlook and recession expected by the end of the year, household finances are continuing to come under pressure. Not only are first-time buyers at risk of being priced out of the market altogether, but renters are facing steeper rent and household bills this year; caught in a cycle of affordability and uncertainty.
“With an emergency budget set to take place in a couple of weeks, all eyes will be on Prime Minster Liz Truss to address the issues and challenges within the housing and mortgage market.”
Samuel Mather-Holgate of Swindon-based advisory firm, Mather & Murray Financial:
“Property transactions are definitely slowing down and may well fall off a cliff over the coming months. Not only is autumn and winter a slower period, but the economy is giving people the jitters. Nervous people sit tight, they don't entertain what is often the biggest financial transaction of their lives. However, despite the economic situation, I don't expect a material reduction in prices as homeowners will want to recoup what they have spent on their homes during and after lockdown so are unlikely to sell at a discount. We are more likely to see house prices flatline."
Dominik Lipnicki, director of Your Mortgage Decisions:
"Even though the latest inflation data published Wednesday showed a slight drop-off, it's still extremely high and most predict it will rise even further in the months ahead. Together with higher mortgage rates, the cost of living crisis will without doubt have an effect on house prices. Few expect a significant fall but a a very slight increase in the rate of price growth over the next 12 months is a likely scenario.
