Property industry leader Nathan Emerson is warning that the housing market is switching from “optimism to concern” as war in the Middle East starts to have a major effect.

Emerson, (pictured) who is CEO at Propertymark, reacted to news that inflation remained steady at 3% in February before the war began, by saying work was needed to “encourage and support growth”.

We have moved from a sense of optimism to a feeling of justified concern in a short amount of time.”

“We have moved from a sense of optimism to a feeling of justified concern in a short amount of time,” he says.

“Although inflation has remained steady since last month, it is important to acknowledge geopolitical tensions moving forward, and the effect such pressures may have on many households over the coming months.

“Today’s news should help bring a measured sense of consistency in terms of the ‘here and now’ regarding how the economy is currently coping.”

Inflation increase

Inflation could be set to rise significantly as oil and gas prices spiral upwards with the conflict between the US and Israel with Iran continues.

An increase in inflation could in turn force the Bank of England to consider pushing up interest rates.

“However, when looking at the wider global picture there are many factors which remain changeable and have the potential to highly influence the economic outlook moving forwards,” Emerson adds.

Work needed

“Following recent news that Government borrowing costs were higher than anticipated, there is significant work needed to encourage and support growth in the housing market over the coming months.

“While caution from the Bank of England will be necessary to help further slow inflation, it is hoped that we will eventually see more favourable mortgage rates appear across the lending spectrum when realistic.”

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