United Trust Bank

63% of brokers expect London house prices to fall

Almost two-thirds of brokers (63%) expect house prices in London to fall further in Q4 2017, according to a new survey.

A recent broker poll from United Trust Bank (UTB) has revealed that 30% of respondents expected prices to stabilise, while just 7% believed that they would increase.

Brokers were also asked their views on the outlook for UK house prices.

The results found that 56% expected prices across the UK to weaken, 35% felt they would increase while 9% predicted we would see the start of a UK house price crash.

“Although there’s a general consensus that house prices in prime areas of London have seen a drop, the picture for the rest of the UK is less clear,” said Noel Meredith, executive director at United Trust Bank (pictured above).

“A lack of supply and a strong demand for good value FTB and family homes – together with assistance from initiatives like the Help to Buy scheme – continue to underpin property values in most parts of the country and our view remains positive.

“The recent increase to the Bank of England base rate may cause some potential purchasers to review their finances, but it’s unlikely to cause them to change their mind about buying for the first time or to halt a house move altogether.

“Furthermore, although this may be the first of several small increases over time, the cost of borrowing for house purchase is likely to remain low.

“There is no shortage of mortgage lenders offering rates from around 1% to customers with good-sized deposits.”

UTB’s poll canvassed the opinions of 140 intermediaries during October.

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