Tom Brown on UK House Prices: 2.9% Annual Growth Shows Resilience in Property Market

Recent data from Halifax reveals that UK house prices have shown a solid 2.9% annual growth, reflecting the ongoing strength of the property market. Despite the challenges posed by higher inflation and persistent borrowing rates, the market has managed to maintain its appeal and resilience. As the Bank of England (BoE) introduces measures to address these concerns, industry experts are optimistic about the potential for a positive shift in the housing market. Tom Brown, Managing Director of Real Estate at Ingenious, shares his insights on the latest trends and what they mean for the future of UK property.

Commenting on the latest Halifax data showing a 2.9% annual growth in UK house prices, Tom Brown, Managing Director of Real Estate at Ingenious, highlighted the ongoing resilience and appeal of the UK property market. Despite higher inflation and persistent borrowing rates, Brown welcomed the recent Bank of England (BoE) rate cut, expressing hope that it signals the start of a much-needed cycle of falling rates.

Brown further emphasized that despite ongoing challenges, such as inflationary pressures and high borrowing costs, the underlying demand for housing in the UK continues to drive market growth. He noted that the 2.9% annual increase in house prices highlights the sector’s ability to maintain stability even in uncertain economic conditions. Brown also pointed out that as the rate cycle begins to fall, the market could see renewed confidence from both buyers and investors, paving the way for further long-term growth in the property sector.

“There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.

“At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”