UK house prices may no longer be soaring, but at an average of £270,000, affordability remains a defining issue in the housing market.

First-time buyers are finding glimmers of opportunity with improving loan-to-income multiples and a rise in low-deposit mortgage products, while regional disparities highlight diverging growth patterns across the country.

London, though still resilient, lags behind more affordable regions in percentage growth, reflecting its unique price dynamics.

To better understand these shifts and the outlook for buyers, Invezz spoke exclusively to Marc von Grundherr, Director, Benham and Reeves, to gain insights into the state of the market and the factors shaping its next phase.

Invezz: The average UK house price now sits around £270,000. How is this level impacting affordability for different buyer segments, especially first-time buyers?

With house prices no longer rising at the meteoric pace we saw in previous years, and with earnings continuing to grow, affordability is actually improving.

This is particularly true for first-time buyers, who are benefiting from stronger loan-to-income multiples and an increase in lower deposit mortgage products.

These changes are helping more buyers get a foot on the ladder far quicker than would have been possible just a year or two ago.

Invezz: Regional disparities are stark, with the North East seeing 7.9% annual growth while London lags at 0.7%. What explains this widening gap across the regions?

London will always be impacted to a greater extent than the rest of the country, whether the market is moving up or down.

The capital’s far higher property prices mean that when buyers act with caution, they do so to the greatest extent in London.

That said, even with slower annual growth, London remains a resilient and highly desirable market, but percentage growth will always appear more modest compared to more affordable regions.

Invezz: How significant is the role of mortgage product availability and eligibility changes in sustaining buyer activity amid a slowing price growth environment?

Extremely important.

Buyers are now able to get on the ladder more quickly thanks to lower deposit products, and beyond that, they’re also able to secure larger mortgages through higher loan-to-income multiples.

This has not only helped to stimulate transactional volumes but has also supported property values, keeping prices buoyant despite wider economic headwinds.

Invezz: Looking ahead to political events like the Autumn Budget, what short-term effects do you expect on buyer activity and house price dynamics?

There’s always a wait-and-see mentality ahead of a major fiscal event such as the Autumn Statement.

Many buyers and sellers will choose to hold back rather than risk missing out on a potential cost-saving announcement, unless they are absolutely desperate to move.

In some cases, it may simply be an excuse to delay in line with their personal circumstances, but regardless of motivation, we often see a surge in activity in the months that follow as confidence returns.

Invezz: How is Benham and Reeves preparing for potential market changes, such as shifts in regulation or economic conditions, in the near future?

It really is a one-day-at-a-time scenario.

The best service we can provide is to give our sellers and landlords honest advice based on what we’re seeing on the ground in real time.

Top-line data reports are always lagged to some extent, so we ensure we’re using our own live data to give clients the clearest possible picture of current market conditions.

That way, they can make the right decision for their individual circumstances, rather than relying solely on retrospective market snapshots.

The post Interview: Despite slower growth, London remains a highly desirable housing market, says Marc von Grundherr appeared first on Invezz

UK house prices may no longer be soaring, but at an average of £270,000, affordability remains a defining issue in the housing market.

First-time buyers are finding glimmers of opportunity with improving loan-to-income multiples and a rise in low-deposit mortgage products, while regional disparities highlight diverging growth patterns across the country.

London, though still resilient, lags behind more affordable regions in percentage growth, reflecting its unique price dynamics.

To better understand these shifts and the outlook for buyers, Invezz spoke exclusively to Marc von Grundherr, Director, Benham and Reeves, to gain insights into the state of the market and the factors shaping its next phase.

Invezz: The average UK house price now sits around £270,000. How is this level impacting affordability for different buyer segments, especially first-time buyers?

With house prices no longer rising at the meteoric pace we saw in previous years, and with earnings continuing to grow, affordability is actually improving.

This is particularly true for first-time buyers, who are benefiting from stronger loan-to-income multiples and an increase in lower deposit mortgage products.

These changes are helping more buyers get a foot on the ladder far quicker than would have been possible just a year or two ago.

Invezz: Regional disparities are stark, with the North East seeing 7.9% annual growth while London lags at 0.7%. What explains this widening gap across the regions?

London will always be impacted to a greater extent than the rest of the country, whether the market is moving up or down.

The capital’s far higher property prices mean that when buyers act with caution, they do so to the greatest extent in London.

That said, even with slower annual growth, London remains a resilient and highly desirable market, but percentage growth will always appear more modest compared to more affordable regions.

Invezz: How significant is the role of mortgage product availability and eligibility changes in sustaining buyer activity amid a slowing price growth environment?

Extremely important.

Buyers are now able to get on the ladder more quickly thanks to lower deposit products, and beyond that, they’re also able to secure larger mortgages through higher loan-to-income multiples.

This has not only helped to stimulate transactional volumes but has also supported property values, keeping prices buoyant despite wider economic headwinds.

Invezz: Looking ahead to political events like the Autumn Budget, what short-term effects do you expect on buyer activity and house price dynamics?

There’s always a wait-and-see mentality ahead of a major fiscal event such as the Autumn Statement.

Many buyers and sellers will choose to hold back rather than risk missing out on a potential cost-saving announcement, unless they are absolutely desperate to move.

In some cases, it may simply be an excuse to delay in line with their personal circumstances, but regardless of motivation, we often see a surge in activity in the months that follow as confidence returns.

Invezz: How is Benham and Reeves preparing for potential market changes, such as shifts in regulation or economic conditions, in the near future?

It really is a one-day-at-a-time scenario.

The best service we can provide is to give our sellers and landlords honest advice based on what we’re seeing on the ground in real time.

Top-line data reports are always lagged to some extent, so we ensure we’re using our own live data to give clients the clearest possible picture of current market conditions.

That way, they can make the right decision for their individual circumstances, rather than relying solely on retrospective market snapshots.

The post Interview: Despite slower growth, London remains a highly desirable housing market, says Marc von Grundherr appeared first on Invezz