Danni Hewson, AJ Bell financial analyst comments on the latest Halifax House Price index:
“The latest house price figures from the Halifax do show a slight cooling, but slight is the optimal word here and it’s important to note the geographical differences. The tapering off of the stamp duty holiday will have been on the minds of some buyers especially those paying slightly over the odds for desirable amenities. But there are still savings to be made, particularly if your dream home’s price is hovering around the national average and even once the scheme ends the extra £3,000 or so is unlikely to make a fundamental difference to the price people are willing to pay to get the extra space they need.
“It is a seller’s market and buyers have more on their minds than just the monthly mortgage payments. For many the next move will represent a significant life change brought about by changes to working practices and changes to life goals. Where previously bars, restaurants and cultural venues were a big draw many people are now shunning the associated crowds and plumping for gardens and wide-open spaces.
“The shift is nothing short of seismic. London has lost its lustre for many people, particularly if they have families which have been bouncing off four walls during lockdowns and isolations. Homeworking is all well and good if its not carried out in a busy kitchen or on an ironing board next to the bed. For those making the trek north the comparable prices will still look attractive and the London market is still ticking along.
“There will be a slowdown as life return to normal and starts to eat into savings and workplaces evaluated their future models. But current low interest rates coupled with the availability of low deposit mortgages and those aforementioned savings will prevent any kind of bubble pop.”
