Experts dispute call of property market peak

Experts dispute call of property market peak

Property experts have played down suggestions from an estate agency group that the UK property market has neared its price rise limit.

Haart, which according to its website has more than 100 branches across the country, found UK house prices rose 12 per cent between April last year and April 2016, to reach an average of £234,069.

Paul Smith, chief executive of Haart, said despite a “roaring month” in April, which saw prices rise 1 per cent, he was also starting to see a big slump in buyer demand, with registrations down 46 per cent across the UK in just one month.

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“We believe the nation has now neared the limit in terms of price rises. Our data is already showing a slowdown in both house price growth and transaction levels.”

HM Revenue & Customs data confirmed the slump in residential transactions between March and April, showing a fall of down 45.2 per cent, while the seasonally adjusted figure for last month 14.5 per cent lower compared with April 2015.

Rachel Springall, spokeswoman for the Moneyfacts Group, said it believed property prices would stay volatile while there is a demand for the houses.

Adviser view:

Daniel Bailey, mortgage adviser at Derbyshire-based Middleton Finance, suggested it is regional, as in the north of England where he arranges most mortgages, prices are still not at pre 2008 levels.

“I still expect a steady growth for the rest of the year. There is still appetite to buy, mortgage availability is good and there is still a lack of property on the market,” he added.