Falling mortgage rates should stabilise house prices, meaning there will be no dramatic falls, according to David Hannah, group chairman of Cornerstone Tax.
More properties are coming to market, as estate agents reported that there were 35 homes for sale per branch in March. This was the highest number of homes for sale per branch since January 2021 – a year ago, there were just 20.
Hannah argued that this shows that sellers are confidence enough to move into their next home.
He said: “The UK is going through a re-adjustment period regarding property prices and is slowly adapting to the new rates of mortgages. However, we are already beginning to see a fall in fixed rate mortgages, which has resulted in a wave of buyers returning to the property market.
“There are now real opportunities for those ready to take them. We are in a situation where sellers have renewed confidence in the market, which has resulted in more properties becoming available. This means prices are falling to an affordable level and buyers now have more choice.
“There will be no crash and no 7-10% fall in property prices that we saw in the noughties. Over 2023, I expect to see low to mid to single-digit growth in the UK property market.”
