New figures from lender the Halifax reveal that annual house price growth slowed last month, in the wake of the former chancellor’s mini budget and subsequent interest rate rises.
Prices grew by 8.3% in the year to October, compared to 9.8% the previous month. Average UK month-on-month prices fell by 0.4% in October, according to the bank’s house price index.
The slowest growth was in the first-time buyer sector, which saw average prices up by 7.5% in the year to October, compared to September’s figure of +10.1%. In the London region, prices rose by 6.8% over the year, taking the average cost of a property to £551,320.
For Nathan Emerson, chief executive of industry body Propertymark, the figures mean a boost to buyers’ “purchasing power” and reflect increasing supply I the market. “There are also more homes for sale coming to the market which is providing buyers with a greater choice,” he said. “This will therefore mean they can be more level-headed with the offers they’re putting forward which will naturally see a softening in prices being achieved over the next few months.”
Kim Kinnaird, of Halifax Mortgages said that while the pace of annual growth continues to ease, average prices remain at a record high. “While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases,” she said.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
She added that the spending cuts, expected in the government’s forthcoming autumn budget statement, could slow price growth further with employment rates and continued demand for properties also factors.
Read more about this story on the Property Reporter website.
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