Survey reveals house price drop could cause property stock drought

The property market is expected to slump following the rise in inflation which could create a home seller drought, according to property purchasing specialist HBB Solutions.

The company conducted a survey of 1,225 British homeowners and found 96% said they would be less likely to sell if the value of their home dropped.

Rightmove has already noted a drop in asking prices for homes by £4,795 this year, but more homes were sold this July than any other month, suggesting the market is just slowing down.

Managing Director of HBB Solutions, Chris Hodgkinson, said: ‘Despite many households enduring an incredibly tough time at present, a high level of confidence remains in the property market. While we’ve seen signs that the market is starting to cool, there’s certainly no evidence that a market crash is imminent.

‘Of course, it would be naive to expect that such a turbulent economic outlook will have no impact on the housing market and it’s inevitable that some form of house price correction is on the horizon following such a heightened period of activity.  

‘So those considering a sale may want to do so sooner rather than later to ensure they hit the market while it remains robust and prices are still holding strong.’

Just 22% of homeowners answering the survey said they were worried that the value of their house might fall in coming months, with most remaining confident in their property.

Instead, participants said they were most concerned about soaring energy costs, with rising prices of fuel and food also putting a stain on household finances.

Increasing mortgage, costs associated with maintaining a vehicle and lifestyle and entertainment costs caused less worry for those surveyed.

There have been reports of banks becoming more conservative with the amount of mortgages they are willing to offer, amid fears of a property crash.

Data has also revealed that the average costs of a mortgage deposit for first-time buyers has risen by 41% over the last 10 years.

Photo by Robert Linder