Assetz Capital chief executive Stuart Law has refuted fears that rising interest rates will slow house price growth.
Law said he does not think house price growth is set to stall. He predicted that it will peak at around one per cent despite concerns surrounding rising inflation.
It comes as the latest Halifax House Price Index shows property values grew by a rate of 9.7 per cent annually during January to a record £276,759.
Prices were up just 0.3 per cent on a monthly basis, down from 1.1 per cent in December 2021.
But Law said he does not expect the slowdown to continue.
“Though some think house price growth will stall given concerns about increasing interest rates caused by rising inflation, worryingly, I do not expect this to be the case at all, and largely expect interest rates to peak at around one per cent rather than anything more substantial,” he said.
“If we are to ensure more sustainable levels of house price growth, we need to provide better support for housebuilders by lowering build costs, encouraging the use of modern methods of construction and streamlining planning processes to enable them to progress projects more efficiently.”
It comes as interest rates were increased for the second time in two months last week to combat rising inflation, which is currently at 5.4 per cent.
Law has previously countered claims in the Halifax House Price Index.
He rejected suggestions last month that price growth would slow.