The head of a rent to buy housing provider has given a brutal assessment of the housing market.
Comments by Jeremy Matallah, co-founder of Keyzy, follow the release of the latest house price index by Halifax.
The index shows that prices fell by -0.1% in May, the second consecutive month of marginal decline.
The average UK house price now stands at £298,806.
In response Matallah says: “House prices are tumbling in real terms. Normally that spells relief but rents are too high, home building is still scarce and income multiples are brutal.
“This isn’t a market correcting, it’s a market freezing over.
“It’s a grim picture. We’ve built a housing market that can’t do the two things we most need it to, which is create new homes that people can afford.
“It’s no good just pinning the blame on build costs, that’s ducking the real issues.
“Stamp duty also has a lot to answer for,
as do monthly mortgage repayments which are hammering budgets in a way that just didn’t happen a decade ago when rates were on the floor.”
Agents also appear to be growing more pessimistic about the market.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “The difficulty in obtaining commitment [from buyers] due principally to worries over the Iran conflict impacting the cost of living, is starting to make itself felt.
“Most buyers are taking their time to try to ensure as far as possible they have found the right place and are not overpaying.
“As a result, prices are wobbling a bit and transactions are taking longer to complete, which is increasing fall throughs.”
Tom Bill, head of UK residential research at Knight Frank, comments: “The seasonal spring bounce in the property market has fallen flat this year.
“Uncertainty around the political direction of the government and whether any future Chancellor could raise taxes further may also keep demand in check, which means we expect minimal UK house price growth of 1.5% this year.”
Jonathan Hopper of Garrington Home Finders says the rest of 2026 may be relatively tough.
“We’re in reset territory in large swathes of the country. The cost of borrowing has settled only slightly, and the combination of economic uncertainty and buyers’ sense that if they wait, prices may get cheaper, is causing some to hold off.
“But with so many sellers jostling for buyers’ attention, this is unquestionably a buyer’s market.”
And Nicky Stevenson – the managing director at Fine & Country – states:
“Potential buyers may be tightening their purse strings and delaying a purchase, forcing sellers to be more flexible on their asking price.
“With confidence still being tested by global uncertainty and energy costs feeding into inflation expectations, it’s understandable that some buyers have taken a more cautious approach.”
