Industry reacts to the latest UK house price index

Director of Benham and Reeves, Marc von Grundherr, commented:

“It’s clear that the extension of the stamp duty holiday caused the market to rebound immediately from the decline in market performance seen as a result of the original deadline.

Of course, it’s simply irresponsible to measure the health of the market based on a metric as erratic as the monthly rate of house price growth and anyone who seeks to do so would do well to retire their crystal ball to the cupboard from which it came.

The real proof in the pudding is the extremely strong performance seen on an annual basis and one that continues to defy expectation despite fears the market could soon run out of steam.

While London continues to trail the rest of the market in this respect, we’re beginning to see the cogs start to turn, driven by a return to the workplace and preemptive demand from foreign buyers in anticipation of a move later in the year. As a result, the London property market will continue to build momentum long after the carrot of a stamp duty reprieve has been removed.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“The property market continues to move forward at an alarming pace, powered by a full tank of buyer demand and a shortage of housing stock to satisfy this hunger for homeownership. While the end of the stamp duty holiday may well act as a slight bump in the road, it will take far more than a marginal decline in homebuyer sentiment to cause the wheels to fall off.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“It’s abundantly clear that the market came to a shuddering halt due to the original stamp duty deadline and while we may now see transactions and house price growth yo-yo due to the double-pronged extension, there’s no hiding the fact that a correction is on its way.

While the government may claim they have successfully kept the market afloat during the pandemic, the reality couldn’t be more different. House price affordability has spiralled and is now even further out of reach for the average homebuyer. Those lucky enough to secure a purchase remain bogged down in lengthy market delays and rather than build more homes, the government continues to feed the furnace to keep property values artificially inflated.

It’s a real mess and one that will take some time to clean up once it does inevitably hit the fan.”

Managing Director of Ascend Properties, Ged McPartlin, commented:

“House prices continue to boom, with the North West sitting on pole and driving market performance in this respect.

It’s clear that the north-south divide has never been wider and while this momentous rate of price growth must inevitably slow at some point, we expect this vast difference in property pedigree to remain as buyers in the North continue to benefit from a far more affordable market, with, or without the benefit of a stamp duty saving.”