Prices will flatten but not plummet

House prices are set to flatten but will not go into freefall, a property expert predicts.

Jonathan Rolande, from the National Association of Property Buyers, says that although the cost of living crisis will impact the market it is unlikely to cause the crash some are suggesting.

His comments come as new figures from Rightmove show that house prices have soared by a record-breaking £55,000 since the pandemic began and are still rising,

Mr Rolande, also the co-founder of House Buy Fast, said: “The market is yet to fully reflect the various pressures that will be put upon it in the next few months.

“Higher interest rates, cost of living increases and more rigorous affordability checks by lenders will all have an effect.

“However, there is still very solid demand from buyers and, of course, the now long-term issue around shortage of supply. Coupled with good employment numbers and the aspiration of many to own their own home, it is possible that the market will slow without the freefall in prices predicted by many.

“Some targeted government intervention to guide the market to where it should be is crucial to unlocking supply and helping those who need it most.”

According to figures released this week by Rightmove, the average price tag on a home has reached a record high for the fourth month in a row, jumping by £7,400 in May.

Estate agents Knight Frank have revealed in their five-year house price forecast that we can expect house prices to continue to increase in 2022 and 2023, but at a much slower rate than the recordbreaking numbers at the start of this year.

It expects house price growth to start to slow to five per cent this year and then to one per cent in 2023 as the impact of the cost of living crisis is felt.