Price rises of up to 5% into 2023 still possible, say...

House prices in some regions of the UK could continue increasing, despite concerns over the economic downturn and forecasts of house price falls of up to 10% in 2023.

Jonathan Rolande, the director of the National Association of Property Buyers and founder of House Buy Fast, said there are signs many parts of the UK could still record increases of up to 5% right through until next year.

Rolande, in his role as spokesman for the NAPB, commented: “Rising interest rates, inflation, a cost of living crisis and a drastic cut in mortgage cuts are a perfect storm of factors which, during any other time, might have led to a house price crash.

“Yet in reality prices are actually holding firm. And in many parts of the UK, especially in the north and in regions of the Midlands, prices are still going up.”

He said the ongoing lack of supply in the market is driving this, as well a crisis in the rental sector. He claims many people can’t afford to enter into rental contracts so are instead saving up and putting all their attention into trying to buy, which in turn puts sellers in a strong position.

“We estimate there will be rises of around 5% over the next six months,” Rolande added, before suggesting that there were clear differences between and the 1990s, when prices crashed dramatically and left many in negative equity.

“Right now, there is still money available to borrow, in 2008 there was not. Rates at 6% are more expensive, but still nowhere near previous highs of 10% and more in the 1990's crash,” Rolande went on.

“Also, commentators talking about slowdowns are not seeing the bigger picture. In the past few years, we’ve had double digit rises month after month in the housing market.”

Rolande said this is not sustainable and had to ‘end at some point’.

“Smaller rises in property prices will boost the chances of those desperate to get on the housing ladder, especially if it’s matched by government policy to support first-time buyers,” he added.

“We’d urge ministers to look again at their stamp duty policy and think about targeting it towards the older property owners who might be tempted to sell up and downsize, thus creating additional supply in a crowded market.”