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House Prices Dropping: Market Stuck in Limbo

  • Writer: Sarah Ruivivar
    Sarah Ruivivar
  • Sep 18
  • 2 min read
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The UK housing market is in a bit of a pickle!



According to the latest RICS UK Residential Survey, house prices took a nosedive, dropping a whopping 19% in August. Buyer enquiries and agreed sales are also on the decline, leaving the market in a sticky situation.


Stuart Collar-Brown from NAVA Propertymark highlights the high yield expectations, especially up north where 10% is the new norm, as a key factor in this price tumble. He paints a picture of a market that’s stuck in limbo, with banks hesitant to adjust their positions despite the glaring misalignment between loan values and current property worth.


Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!

Access from your preferred podcast provider by clicking here


The situation isn’t hopeless, though. Collar-Brown suggests that banks need to take a proactive stance, realising losses and resetting lending to kickstart the market. He assures us this isn’t a repeat of the 2007–09 crisis; there’s money out there, just waiting for the right conditions to flow.


Russell Anderson from Paragon Bank adds his two cents, emphasising the need for a supportive environment for landlords. He calls for a balanced approach that protects tenant rights while encouraging responsible investment. With the right mix of policy changes and financial support, the rental market could see a brighter, more sustainable future.


So, while the current scene might look a bit grim, there’s hope on the horizon. It’s all about getting the pieces in place and letting the market work its magic!


Want to hear more? Join Mal & Matt on the Property AI Report Podcast each week!

Access from your preferred podcast provider by clicking here



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