A LEADING property association says the property market is “teetering on the brink” as new figures show the pace of house price growth is slowing.
New data shows house prices continued to rise in the double-digits last month but the annual pace of growth slowed further, figures show.
According to Halifax, the average price of a UK home increased by 0.4 per cent in August after a slight dip in July to hit a fresh record high of £294,260.
Prices were more than £30,000 higher than in August last year, or an increase of 11.5 per cent, but that marks a slowdown from a rise of 11.8 per cent in July and the lowest rate of growth in three months.
Commenting on the figures, the National Association of Property Buyers, said the cost of living crisis risked making the situation even worse.
Spokesman Jonathan Rolande said: “Despite price increases slowing, it’s still very much a tale of two property markets. On the one hand there are those who already own property and are moving or adding to their rental portfolios. On the other hand, there are those who, despite slightly suppressed prices, are finding it hard to obtain a mortgage, deposit or both. The cost of living crisis is bringing this in to even sharper focus and risks making the inequality even worse.”
Urging the Government to take action Mr Rolande said the sector required stability in its leadership and needed widespread reform to help the soaring numbers of people unable to buy or rent a property.
He said: “We must see the supply of property increase by empowering smaller builders with easier routes to get planning. Stamp Duty is archaic and needs a re-think which would increase fairness and free up off market property – give pensioners a zero band when they move downmarket for example.
“The Government should also look at increasing tax breaks for companies opening in areas where cheap housing is plentiful to take some strain off the south east. The new PM must be bold. The property market underpins everything we take for granted in this country and it needs help after years of imbalance, short-term ideas and mis-placed billions in subsidies. It needs radical change and that will take radical thinking. I hope our new Prime Minister has the vision to do this but time will tell.”