House prices rose 0.1% month-on-month – the 12th consecutive monthly increase – according to the Nationwide Building Society. The average house price in July reached £271,209. Robert Gardner, chief economist at Nationwide, said the housing market had been surprisingly bullish so far, given the strain on household budgets and consumer confidence sinking to a record low. He added: “We continue to expect the market to slow as pressure on household budgets intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year.” Marc von Grundherr, director of London estate agency Benham and Reeves, said: “You’d think that, having basked in a holiday of mortgage affordability and stamp duty cuts during the pandemic, the appetite of the country’s homebuyers would have waned . “This is clearly not the case and even a series of successive rate hikes have yet to spoil their flavor as they continue to pile their plates high – pushing house prices to record highs in the process. “With the brick-and-mortar supply buffet remaining understated relative to the level of housing available, we can expect property prices to remain robust even in an uncertain economic environment.” “Market momentum remains unwavering” James Forrester, chief executive of Barrows and Forrester, added: “Market momentum remains unwavering, having weathered a prolonged period of Brexit uncertainty, a global pandemic, rising inflation and the most incompetent prime minister in living memory. “All things considered, it seems nothing short of an apocalypse can bring the real estate market to its knees.” However, HBB Solutions managing director Chris Hodgkinson said: “While house prices remain high, home sellers would do well to fasten their seat belts as we are likely to witness a period of increased turbulence ahead of end of the year. “Buyer demand levels have already started to decline and when the well runs out, home sellers will have to adjust their asking price expectations in order to secure a sale, as a perfect storm of rising mortgage costs, record inflation levels and steep costs Life is putting pressure on the UK property market.’
