The property building company Redrow has stated that the level of growth within the UK housing market is starting to ease off, becoming the latest in a line of industry insiders to make that prediction.
Redrow has just issued its report for the year, which states that the opening 10-week period of the latest financial year had already seen the level of demand within the housing market return to more standard levels. It went on to say that increases in living costs, rises in interest rates and skyrocketing inflation were the primary causes of the sharp slowdown in growth.
The non-executive chairman for Redrow, Richard Akers, pointed out that the combination of these three factors was inevitably going to bring housing market growth back to more typical levels.
Speaking to Mortgage Solutions, chief executive Matthew Pratt agreed, before going on to add that:
“Over the last two years the market has been incredibly strong with elevated demand, partly resulting from people’s changed priorities around working from home.”
He continued by saying that as the working situations of people return to normal following the pandemic, the housing market demand is also doing so.
Pratt concluded, saying that everything from employment levels to product availability and interest rates remained fairly healthy, so there was reason to be positive about the future of the market.
Many mortgage advisors with CeMAP training may feel that reduction in price growth is a necessary balance to rate increases for buyers seeking properties they can afford.
