Managing Director of Millwood Designer Homes, John Elliott, reacts to the latest research revealing confidence in the UK housing market is at a five year low:
It has recently been revealed that confidence in UK house prices has fallen to its lowest level since December 2012, according to the latest Halifax Housing Market Confidence Tracker. Falling to a five year low, the survey sounds a new warning over the strength of UK economy with one in five believing prices will drop amid rising inflation and looming interest rates.
The UK housing market has been under the spotlight in the past year following the EU referendum and optimism has declined significantly, with the general public expecting a slowdown in the market and the economy as a whole. It is a real shame confidence has been reduced since the Referendum, as I still stand by my view that the Prime Minister Theresa May will obtain a good deal in the UK’s exit from the EU. At Millwood, we have experienced steady sales post-Brexit and footfall through our show homes has even increased!
Ultimately, it seems lack of confidence is stemming from the younger generation, who are struggling with home ownership aspirations, translating into a negative sentiment about the market as a whole. However, with the Prime Minister’s recent £10bn boost for Help to Buy, commitment to reignite home ownership and promise to help British homebuilders, every generation should feel confident that the Government is fully behind helping people get on and move up the ladder at the same time as creating a more stable market.
Millwood remains confident and I am looking forward to Chancellor Philip Hammond’s Autumn Statement later this month. I wish to see a number of issues tackled on his agenda, however perhaps most importantly, I believe it is absolutely necessary that the government should have serious regard to the issue of stamp duty, if it wishes to restore confidence and create a more fluid housing market.