The average UK house price decreased by 0.5% in September 2023, following a month-on-month increase of 0.7% in August 2023, this is according to the ONS House Price Index published today.
Jackson-Stops chairman Nick Leeming says the relatively modest change in house prices in today’s ONS figures reflect a market driven by varying supply levels and increasing needs-based buyers.
“Whilst house prices are continuing to adjust and settle into their new normal, it is clear there is a powerful undercurrent of resilience that keeps the market steady.
“Though the market is largely balanced, with wider analysis suggesting that the UK housing market will outperform forecasts this year, the pendulum continues to swing drastically across different areas of the country”.
Leeming explains that key commuter towns such as Oxted and smaller cities such as Norwich, Chelmsford and Truro, in October saw an unwavering level of interest from buyers which simply does not match up to the number of properties available to buy, helping to insulate prices.
“However, in other local areas we know the situation has become much more equal, with sellers embracing greater realism in their asking prices in order to ensure offers turn into completions – a clear sign that the enthusiastic pricing of 2020 and 2021 has been left in the rear-view mirror”.
He adds: “As we enter a traditionally quieter period for completions and instructions, with the national mood shifting from moving boxes to mulled wine, the recent news that some highstreet lenders are bringing sub-5% deals back to the table will be a well-timed boost of confidence to buyers. Coupled with the UK avoiding a recession once again in Q3, stability is the order of the day.”
Together director of customer sales Alan Davison says a fall in house prices may be welcome news for first-time buyers, allowing those who have previously been locked out of the market because of affordability issues to take their first steps on the housing ladder.
“As we enter 2024, we’re expecting a further softening in demand from amateur buy-to-let landlords for good quality, smaller homes. We’re already seeing BTL investors exiting the market, which is unsurprising given the succession of tax and regulatory changes, on top of higher rates increasing monthly mortgage payments.
“However, this exodus may lead to a larger choice of properties coming up for sale, presenting more affordable opportunities for first time buyers and second steppers who’ve previously struggled to navigate the tricky property market”.
He concludes: “We are also waiting to see how any announcements in this month’s Autumn Statement will impact people’s property plans next year. With the King’s Speech confirming housing market reform will be addressed as part of this, all eyes will be watching for any signs of new policies and solutions to boost homeownership.”
