UK house prices shot up by 2.9% in September, new figures from the Office for National Statistics (ONS) reveal. The average home now costs £292,000 – £5,000 more than last year.
England led the charge with average prices hitting £309,000 (up 2.5%), while Scotland saw a 5.7% surge to £198,000. Wales edged up to £217,000 (just 0.4%), and Northern Ireland saw a 6.4% rise to £185,000 between April and June.
But it wasn’t just house prices rising – inflation is back with a bang with the Consumer Prices Index (CPI) shooting up to 2.3% in October, way above last month’s 1.7% and even higher than experts predicted.
One City pundit sold Property Soup: “The cost of living – and moving – just got even steeper!”
CONTINUING RESILIENCE
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “At first glance, these figures show the housing market to be demonstrating continuing resilience.
“However, while this is the most comprehensive of all the price surveys as it includes cash and mortgaged transactions, it reflects buyer and seller decision-making from a few months ago at least.
“On the ground since, we have had to contend with worries about the Budget and then its fallout.
“The result has been more caution and heavier negotiation over available properties, despite the recent drop in mortgage rates.
“Worries remain about the pace of further falls in rates and increases in inflation as buyers want to ensure they have a sufficient buffer against potentially rising costs.”
UPLIFT IN BUYER INTEREST
Matt Thompson, Head of Sales at Chestertons, says: “In September, sub-4% mortgage products as well as lower interest rates motivated house hunters to start or finalise their property search.
“This uplift in buyer interest enticed sellers to put their property up for sale which provided buyers with a larger pool of properties to choose from.”
REALISTIC PRICING
Amy Reynolds, Head of Sales at Richmond estate agency Antony Roberts, says: “With house prices holding fairly steady and sellers more realistic about pricing, it could be the nudge buyers need to act.
“In saying that, mortgage rates remain high and that will impact buyers’ decisions, perhaps deciding to wait until they come down again.
“First-time buyers don’t have the luxury of delaying a move as they could potentially save thousands of pounds in stamp duty if they transact before 31 March.”
“However, first-time buyers don’t have the luxury of delaying a move as they could potentially save thousands of pounds in stamp duty if they transact before 31 March.
“As we head towards the end of the year, we expect lower transaction levels due to affordability pressures and buyers taking longer to commit.
“The exodus of landlords, driven by tax and regulatory changes, has dampened activity in the buy-to-let sector, impacting overall market turnover.
LIMITED STOCK
And she adds: “In areas where stock is limited, markets will have remained steady, particularly the family home market with work-from-home potential.
“Homes that are well priced and well presented in the Richmond Borough are still selling relatively quickly and the same will likely be the case in other desirable parts of the country.”
LOWER SALES VOLUMES
Tomer Aboody, director of specialist lender MT Finance, says: “We are seeing lower sales volumes in England which in turn are pushing buyers to pay slightly higher prices, and increasing the national average property value.
“Although transaction volumes are lower than in the past, they’re rising as rates are reducing or holding at reasonable levels, offering buyers more affordable finance options.
“With the Budget behind us and no help or push from the Government, any hope of assistance in the future is dwindling although the market is still hopeful of a further interest rate reduction, which will provide a boost.”
