HOUSING MARKET UPDATE: Property prices on pause
According to the latest housing market indices, property prices have remained stagnant, writes Kate Faulkner.
What is good news from the reports, however, is the increase in properties coming to the market for sale and the fact that new buyer enquiries seem to be buoyant, too. The more buyers and sellers out and about, the more opportunity for transactions – the real driver of the property market and the economy – to rebound.
With the good news about inflation now just ‘below’ the 2% target, this could give the Bank of England some room to manoeuvre at the next meeting on November 7th and may be an extra Christmas present (there, I said the Xmas word!) for another one in December. However, don’t hold your breath on two cuts by the end of the year just yet, as some forecasters are saying inflation will rebound slightly.
Property price and market indices headlines
Autumn action starts early as movers spot window of opportunity
“Average new seller asking prices rise by 0.8% (+£2,974) this month to £370,759. September usually sees a monthly rise in prices, but this year’s increase is double the long-term average, with prices supported by increased activity levels.”
Sales market activity continues to display a more positive trend
”New buyer enquiries indicator remains in positive territory.”
September records fastest annual house price growth in two years
“UK house prices increased by 0.7% in September, after taking account of seasonal effects.”
House prices rise for third straight month
“House prices increased by +0.3% in September, matching rise seen in August.”
Housing market treads water in September
“Average prices £200 lower than in August.”
UK house prices up 0.7%, from -0.3% a year ago
“Buyers remain price-sensitive, which is keeping price rises in check.”
Insights from this month’s indices:
– The traditionally busier Autumn market appears to have started early, with many movers spotting a window of opportunity to act as mortgage rates trend downwards and property choice increases:
– The number of sales being agreed is up by 27% year on year, a strong rebound compared with last year’s more subdued market as pent-up buyer demand is released.
– Home-owners more confident to come to market, with the number of new sellers up by 14% on this time last year, and the average number of available homes for sale per estate agent at its highest since 2014.
– UK house prices up 3.2% year-on-year in September.
– Year-on-year prices are up +4.7%, still the strongest rate since November 2022.
– Average amount paid by first-time buyers now around £1,000 less than two years ago.
– The continued negative monthly changes since March, though small, have undermined the gradually improving year-on-year picture seen earlier with the effect that, on an annual basis, average prices in September are about 3.3% lower than a year ago.
– Lowest mortgage rates for 15 months boost sales market activity.
– Buyer demand and sales agreed up by over a quarter since 2023.
– House prices are rising by up to 2.5% in more affordable areas.
– Almost a third of homes for sale are ‘chain-free’ as investors and second home owners sell in face of recent and possible tax changes.
– Some coastal and rural areas see supply of homes for sale up 40% on last year.
