Are Storm Clouds Gathering Over UK Housing Market For Real Or Seasonal Concerns?
Autumn is a metaphorically perfect season for the storm clouds over the UK housing market if this week’s headlines are to be believed.
So says Fiducia Commerical Network Managing Director (UK) Mark Grant after another week of gloomy predictions from finance experts.
But is this actually case or, with Halloween just days away, a seasonal trend ahead of brighter days.
Lloyds Bank Group predicted a drop in-house prices along with Santander to spark concern over the short-term future for house prices.
The news that St James Place decided to suspend trading in its £820 million property investment fund further raised concerns but is it really doom and gloom?
Mark, said: “Lloyds Bank Group – owner of the Halifax and the UK’s largest mortgage lender – predicts a 5% drop in house prices for the 2023 and a further 2.4% in 2024. They added that we may glimpse the sun again in 2025 with a 2.3% rise in prices.
“If Lloyds’ forecast plays out this would see a fall of 11% from 2022’s peak in house prices – and it tallies with another forecast from Santander who predicts an 11% drop in 2023 and further 2% in 2024.
“Causing a shiver for professional investors was the news that St. James Place suspended trading in its £820m property investment fund, as a ‘proactive measure to protect the interests of clients’ – often code for preventing a run on the fund for withdrawals.
“This was less than a week after M&G Investments closed its £565m UK property fund, citing a lack of interest from investors.
“Comparison website Reallymoving analysed 221,000 agreed sale prices and identified a 4% drop from £337,000 in Q3 2023 to £324,000 in Q4.
“As you would expect, they found regional differences – ranging from 9.8% falls in Wales and 8% in the West Midlands, to just a modest 0.6% drop in the South West, and 0.2% in Yorkshire & The Humber.”
Mark leads Fiducia Commercial Network in the United Kingdom, the fastest growing network of Appointed Representatives in the country.
Members of the Fiducia Commercial Network are individual operators able to provide commercial finance opportunities for their existing clients under Fiducia’s regulatory umbrella.
The Network is growing at an unprecedented pace with more and more individuals operators looking to join to provide their clients with commercial finance opportunities.
Mark, added: “Experienced investors and landlords know that house prices are seasonal, and that Autumn and Winter are always, at some stage, followed by Spring and Summer.”
Talk to Mark and the Fiducia Commercial Network team at the Finance Professional Show in Olympia on November 10th. The team will be there on Stand H3.
- To learn more about the Fiducia Commercial Network or to apply to become an Appointed Representative email the team via: email@example.com
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