Despite five rate rises and expectations of a slowdown, research from propertyfinder.com indicates a positive long-term outlook for the housing market as a lack of supply continues to buoy prices.
The majority of home buyers and sellers still have faith in the market and expect house prices to rise by 5% over the next twelve months. Almost half attribute house price rises to a lack of homes coming onto the market, and a further 39% say that a lack of new homes being built is pushing up prices.
Warren Bright, chief executive of propertyfinder.com, said: “The housing market remains resilient although interest rates have had a cooling effect on price growth and the full impact is yet to feed through into data. Changes in consumer attitudes are the first indicator of market conditions to come so we should expect house price inflation to continue to slow.
“Nevertheless, supply is chronically constrained with too few properties coming onto the market and far too few being built. Inevitably that will support prices over the longer term. The housing market is still in very good health so far. It has moderated in a controlled way and is reacting just as the MPC would have hoped. However, the rises so far will continue to affect the market for several months and any further hikes could be overkill.”
