"We urgently need a plan from the Government on how to tackle it or we face the nightmare scenario of falling house prices and a lack of supply. This, in turn, will have a devastating impact on the housing market"
- Jonathan Rolande - NAPB
According to recent data released by Nationwide, house prices saw their biggest monthly rise in October for more than a year. However, they were still down sharply from a year ago and the 0.9% monthly rise in prices was most likely due to there not being enough properties to meet demand.
Jonathan Rolande, from the National Association of Property Buyers, said: “After month after month of falling house prices the news of a rise does provide a welcome boost for homeowners.
“But it would be foolish to read too much into this increase. The reality is that we can expect to see house prices fall in the months ahead and this is a trend that could continue through most of 2024.
“What is particularly alarming about this week's announcement is the rise being linked to supply. The National Association of Property Buyers has long been warning the country is in the grip of a national crisis in terms of dwindling housing supply.
“We urgently need a plan from the Government on how to tackle it or we face the nightmare scenario of falling house prices and a lack of supply. This, in turn, will have a devastating impact on the housing market.”
Outlining what he expects to see happen to prices in 2024, Mr Rolande added: “I expect prices to continue to fall at the start of 2024. The beginning of the year is always a traditionally tough period for prices. We could see current prices 5% lower by the Spring. Come May or June might start to see them creep back up - but only if the economy moves on an upward trajectory.
“Sadly, it's still highly possible prices could drop every month in 2024. We might now start to properly see some 'green shoots' until 2025.”