Halifax February HPI

ended 07. March 2022

Late notice so apologies. Tomorrow (Monday) morning at 07:00, the Halifax is publishing its February HPI. You all know the drill by now, and if you don't, just jot down a few thoughts on what's happening in the property market right now and where it's headed next. If you're a Premium user, your response will be edited so that it reads like a dream. Over to you. 

5 responses from the Newspage community

Star Quote
"The UK property market has gone down the rabbit hole. In a harsh climate of rising interest rates, raging inflation and impending National Insurance tax hikes, the property market dances to its own tune and prices continue to rise. Economic logic suggests prices should be coming coming down but the surreal lack of stock is keeping values buoyant."
"Many of our landlord and property developer clients are expecting business as usual this year. They are continuing to invest and are expecting another good year for UK house prices. Demand from buyers is still strong and buy-to-let mortgage rates have only seen minor increases since the recent Bank of England rate increases given the level of competition among lenders. Overall, the outlook remains oddly positive amid the cost of living crisis, but if inflation continues on its upwards trajectory, things may well change. Any escalation of the conflict in Ukraine could also impact the market."
"The age of ultra-cheap credit, which has been propping up the housing market for more than a decade, is over. Some are predicting inflation as high as 10% inflation, with energy bills reaching an eye-watering £3,000 this year. If that happens, I can only see house prices falling, because higher mortgage rates and the cost of living crisis will have a huge bearing on mortgage affordability. It's also entirely possible that lenders, fearing lower property values, could pull 95% LTV deals altogether. Fewer first-time buyers means fewer transactions, piling further downward pressure on house prices. Though this latest house price index suggests the show goes on, the reality is that, for the UK property market, the show will soon be over."
"Unsurprisingly, Britons continue to want to live in houses that they own. Given that there are more people wanting to own their own abode than there are abodes available to buy, the increase in house prices outstrips inflation, let alone wage growth, again. The only saving grace for first-time buyers is that yet another lender is now allowing them to borrow 5.5 times their income, in turn sending house prices even higher. The market giveth and the market taketh away. "
"We have many of the ingredients in the pot for a significant recession and so it's important to note that this house price index looks back not forward. We have seen high property demand for over a decade and it is naive to believe this will carry on. Covid has delayed the full impact of the UK leaving the EU and we are now experiencing the financial impact of the pandemic, along with a war in Eastern Europe. There is a storm brewing."