Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
UK Property Market Update
Annual house price growth experienced a bit of a turnaround in October, rising 0.9% month on month and a fall of only -3.3%, compared to -5.3% in September. The average house price rose from £257,808 in September to £259,423 in October.
Housing market activity remains weak, with just 43,300 mortgages approved for purchase in September down from 45,400 in August. This figure is still hovering around 30% below the monthly average from before the pandemic.
If you have been following housing market activity, then this news comes with no surprise. Affordability is still stretched, and despite market interest rates moderating, they are still much higher than the low rates from 2021.
The slight rise in housing prices last month is likely due to the lack of supply in the market, solid labour market conditions, and historically low levels of mortgage arrears.
At least for the coming quarters, activity and house prices are likely to remain subdued. Even though there are some signs that cost-of-living pressures are easing now that the inflation rate is running below average earnings growth rate. Despite this, consumer confidence remains weak and surveyors are still reporting muted levels of new buyer enquiries.
The Bank of England base rate is not expected to make a significant decline any time soon, so borrowing costs are not likely to go back to the historic lows we saw directly after the pandemic. Experts say that while housing market activity will remain relatively subdued in the short-term, over time affordability will gradually improve through a combination of solid income growth and modestly lower house prices and mortgage rates.
Stay in the know
If you’re planning to buy or sell property this year, check back monthly for our regular update on the nation’s property prices and contact one of our advisers for personalised advice.
Figures quoted from Nationwide House Price index – October 2023.
If you’re planning to buy or sell property this year, contact an advisor for personalised mortgage advice.
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