According to Rightmove, the average price of property coming to the market rose by 0.9% (+£3,398) in October to a new record of £371,158*. The main reason that house prices rose this month is that there continues to be more people looking to move than there are homes for sale. The imbalance of houses means sellers up and down the country are still reporting multiple offers from numerous buyers for their properties. The lack of stock is what is dictating the pace of the market and this means that sellers with properties don’t need to lower their asking prices to attract interest from buyers.
The base rate changed again on 3rd November 2022. Banks and building societies pulled some mortgage deals following the original mini-budget and have since returned to the market with higher prices due to market uncertainty and inflation. Mortgage rates remained historically low for most of 2021, but monthly mortgage payments are now on the rise. This, teamed with the increase in the cost of living might slightly dampen the number of buyers coming to market and looking for property. In fact, in the fortnight that followed the mini-budget, demand dropped by 15% compared to the same two weeks last year*. But it’s still higher than it was in the same period in 2019.
We often see a seasonal drop in average asking prices in November, ahead of the Boxing Day bounce when more buyers enter the market. The past two years have been exceptionally busy but the prospect of increasing pressure on households’ finances caused by the cost of living crisis could cause growth to fall. As of yet we’re seeing no immediate effect and house prices are, by and large, continuing to rise.
Timing a house purchase is incredibly difficult, as it really depends on your individual circumstances. First-time buyers should calculate how much money they will spend on rent in the interim and assess how long they can realistically afford to wait. Buying a property is largely a personal decision but if you’d like to discuss mortgage rates which may affect your monthly payments, we’d recommend quick chat with one of our mortgage consultants.
*Rightmove House Price Index October 2022. Compares two weeks in 2021 and 2022 (23/09 – 07/10). https://www.rightmove.co.uk/news/house-price-index
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MOST BUY TO LET MORTGAGES ARE NOT REGULATED.
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