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The new figures from Halifax revealed that house prices decreased marginally in September by 0.1 percent in the second slight decrease of the past three months. The annual rate of growth also dropped from 11.4 percent in August to 9.9 percent in September. The average UK house price is still an eye-watering £293,835.
The Government’s mini-budget last month announced a cut to stamp duty, however, rising interest rates, the continued cost of living and surging energy prices are likely to dampen the property market.
All of these factors are bringing into question whether there could be an imminent property market crash in the UK.
Express.co.uk has asked two property experts whether they think there could be a property market crash in the future.
Daniel Copley, consumer expert at Zoopla exclusively told Express.co.uk: “We do not expect a property market crash as the market is much better placed to weather the economic headwinds than it has been in the past and there are now rigorous mortgage checks in place.
“These checks ensure the market is better placed to endure high mortgage rates and the increased cost of living.
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“What is evident is that buyers and sellers need to ensure they are prepared fully for the buying and selling process.”
However, Mark believes the current impact the economic backdrop is causing some buyers to pull out of transactions which is causing other problems within the market.
He added: “The current impact we are seeing is buyers having to pull out of transactions due to the timescale it is taking to work through the conveyancing process which is resulting in the expiration of mortgage offers and a subsequent unaffordable increase in a new mortgage offer.
“Buyers and sellers need to ensure they have the best team of people around them in the agent they choose, the financial advisor and solicitor.”
READ MORE: House prices fall slightly in the UK with ‘downward pressure’ expected
Phil Tennant, chief operating officer at iBuyer UPSTIX commented on the latest house price data from Halifax.
He said they are not seeing signs of a house price dip but that spiking mortgage rates might start to have an impact soon.
Similar to Mark, he believes property chains will “collapse” with one in five property chains already in collapse.
He continued: “This will only increase for reasons of mortgage unaffordability, shifting valuations, or simply cost of living calculations.
“In this context, those currently engaged in the sales or purchase process would do well to expedite things where they can.
“While the market hasn’t currently shown signs of a major dip, given all the market noises you’d expect sellers to face increasing difficulties in closing deals especially given that many buyers may be finding it harder to obtain a mortgage.”
It comes as earlier this week, a major estate agency amended its forecasts after the mini-budget.
The new forecast from Knight Frank predicted house prices will plunge by 10 percent in the next two years.
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