Assetz Capital’s chief executive Stuart Law has predicted that UK property prices will continue to grow, after the Halifax House Price Index reported a dip in prices during the month of June.
Law (pictured) said that he expects prices to rise by between eight and 10 per cent in both 2021 and 2022, due to a number of factors. These include low interest rates, increased wage growth, and ongoing demand for housing.
His comments came after the Halifax House Price Index found that the average house price in June was £260,358 – a 0.5 per cent drop, month on month.
Annual house price inflation was 8.8 per cent in June, down from 9.6 per cent in May.
Halifax’s managing director Russell Galley noted that the June dip was due to the phasing out of the stamp duty holiday, and added that the market might start to lose some steam entering the latter half of the year.
However, Law said that despite the “dampening effect” of the stamp duty holiday coming to an end, he believes that demand will continue to be strong, both later in the year and next year, pushing prices up over the longer term.
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“SME housebuilders will be the key to meeting this demand, utilising their local knowledge to address shifting housing trends, as well as their ability to adopt innovative housebuilding processes at speed,” Law added.
“We’ve already received hundreds of millions of pounds worth of loan applications from housebuilders looking to make the most of current market dynamics and support the nation’s housing needs which could ultimately create new supply that acts as a stabiliser for pricing over the long-term.”