Housing market set for slowdown
In Faulkner’s Consumer Property Market Report she analysed and compared number of leading house price indexes such as Nationwide, Halifax, the Land Registry and Acadata.
Nationwide reported an average property price of £186,512 for May 2014, up 11% year-on-year, while according to the Land Registry prices stood at £172,069 in April, an annual increase of 6.7%.
For Acadata, which tends to record a higher figure as its index calculates mean data rather than median, prices hit £266,000 in May 2014, 8.5% higher year-on-year.
Faulkner said: “The pent up demand which has driven prices forward thanks to a lack of stock coming onto the market over the last 18 months seems to be peaking.
“I’ve certainly seen in several property searches a dramatic increase in properties coming onto the market, and rather than agents waiting for me to contact them, they are now chasing me to view.
“The second change in the stats too is numbers now are comparing a rising market in 2014 versus a rising market in 2013.
“This means that the difference year-on-year is likely to narrow and the result of this is media reports of a ‘slowing market’ which will help to calm even the likes of London down a little.”
In many of the indexes house price growth appeared to be slowing down, as Nationwide said approvals in April were 17% below January levels.
Miles Shipside, Rightmove director, said previously: “The London market powers the rest of the UK but is starting to run out of steam.
“While the legacy of rises in central London continues to ripple out to its better-value commuter-belt, fuelling price increases in all southern regions, London itself is now marking time.
“It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far.
“Through luck or judgement it appears that the timing of the Mortgage Market Review, more property for sale in all regions, and a tail-off in pent-up buyer demand are alleviating some of the upwards price pressure.”
Property prices were 1% above 2008 levels according to Nationwide in May, for Acadata they were 15% above in May while the Land Registry stated they were 6% below in April.
When comparing prices with the 2009 downturn Nationwide said they were 26% higher, the Land Registry put them 13% higher while Acadata said they were 35% higher.
Faulkner added: “I expect by the end of the year, the idea of us being in a housing bubble caused by Help to Buy rather than prices rising due to pent up demand from 2.5 million people who didn’t buy between 2007 and 2012 will become more clear.”