interactive investor comments on Zoopla’s housing market statistics.
- The number of properties put up for sale were 5% higher in January than the five-year average, according to new figures by Zoopla.
- House prices rose by 7.8% in the year to the end of January, but the rate of house price growth may be easing.
- The mismatch between supply and demand continues.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The increase in the supply of homes across the board is great news for buyers, allowing existing homeowners to progress up the property ladder towards their ‘forever home’, while freeing up inventory for the new wave of first-time buyers who’ve struggled to find a footing.
“House price growth continues to exceed expectations, powered by robust demand. While the escalating cost of living crisis and the spectre of higher interest rates are likely to exert a cooling effect on the housing market, the demand for property could grow further still if proposals to unwind the tough mortgage affordability tests, implemented in 2014 to prevent a repeat of the financial crisis, see the light of day.
“If green-lighted, the proposals could do wonders to buyers’ affordability position, allowing them to secure a home loan at a higher multiple of their salary. But it could also add to the demand supply imbalance for property – thus driving prices higher. It could be a double-edge sword. In any case, borrowing more could add further pressure on budgets amid the current period of uncertainty for personal finances.”
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