Paul Stockwell, Chief Commercial Officer at Gatehouse Bank, comments on October’s ONS UK House Price Index data
“When the property market closed back in March, only the bravest would have predicted we would enter autumn with months of sustained house price growth right across the country.
“Yet a perfect combination of pent-up demand, the stamp duty discount, savings accumulated during lockdown and a desire for many to move to properties with more homeworking and outdoor space has propelled buyers onto the front foot and driven prices to a record high.
“Mortgage commitments are still being made at their highest levels since the financial crisis, and there are yet to be any signs of this demand levelling off.
“However, the start of the new year could mark a turning point as the March stamp duty holiday cut-off looms larger.
“Professionals across the industry, from estate agents to banks and brokers will be hard-pressed to get applications across the line in time, but there is a risk that a growing backlog could result in purchases going beyond the deadline and agreements falling through as buyers reconsider the value for money represented by their purchases.”