Nicholas Ayre, director of UK buying agents Home Fusion, said: “Property ownership is a pipe dream for the majority of today’s young adults while rents are at astronomical levels. Renting was once the default option for people who were saving to own their own homes. Now it’s a luxury. For a huge number of today’s young people, the only option is to live with their parents.”
Nicholas Ayre of UK buying agents Home Fusion said: “If ever there were a disconnect between house prices and the economy then surely this is it.
“For house prices to have risen in July and over the three months leading up to it is incongruous given the state of the domestic and global economy.”
He claimed that the Halifax is “optimistic” when it says that low rates and a slowly improving economy will support demand.
Mr Ayre said: “We are on the verge of global meltdown and so the ongoing growth of the UK economy is open to question.
“The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel. Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.
Nicholas Ayre, director of buying agents, Home Fusion, said the difference between the Nationwide’s positive growth in February and the near one percent decline noted by the Halifax drives home the lack of direction in the housing market.
He said: “There is huge uncertainty about where the market is now and where it is headed next.
“This kind of uncertainty around price direction hugely undermines buyer confidence.
“The trending down over three months does suggest the market overall is weakening.”
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