UK home costs rise in October regardless of financial turmoil | Housing market

Asking costs for homes within the UK edged increased in October, though demand from first-time patrons has dropped as mortgage charges surge.

Regardless of the financial turmoil for the reason that authorities’s mini-budget final month, there was little fast signal of the housing market slipping, in accordance with Rightmove.

The property web site mentioned that the common value of a property coming to market this month was up 0.9%, to a brand new report of £371,158, barely under the common improve for the time of yr.

Nonetheless, Rightmove warned that the results of wider financial uncertainty might take time to filter via, with some patrons dashing to finish on the again of present mortgage affords.

Others have predicted that the market will quickly decline, with Halifax reporting a marginal lower in bought costs in September, and surveyors RICS tipping the tip of the 13-year UK housing growth subsequent yr.

First-time purchaser demand was 21% decrease within the final two weeks in contrast with 2021, however nonetheless considerably increased than in 2019, Rightmove mentioned. Nonetheless, it mentioned some new movers had paused their plans within the face of uncertainty over costs and charges.

It mentioned the overwhelming majority of agreed gross sales had been going forward, with some patrons accelerating the method to make sure they might proceed with decrease fixed-rate mortgage affords earlier than they expired. Costs had been lowered on 23% of houses on sale, in contrast with 21% final month.

About 1,000 mortgage offers had been faraway from sale by lenders final month, after the previous chancellor Kwasi Kwarteng’s mini-budget on 23 September spooked monetary markets and prompted expectations of far increased rates of interest.

Rightmove mentioned asking costs had been more likely to drop in November and December, according to regular seasonal value adjustments, and that there have been “extra financial occasions to play out” earlier than forecasting the market in 2023.

Tim Bannister, Rightmove’s director, mentioned: “What’s going to occur to deal with costs is understandably on the minds of many home-movers proper now, particularly after the market uncertainty after the federal government’s mini-budget. There was no fast impact on costs, however the development of a slight softening within the tempo of development continues.

He mentioned it will take time for the market to settle right into a extra regular stage of exercise after “two years of market frenzy”, including: “Some aspiring first-time patrons can have had their plans dashed by the sudden nature of the mortgage fee rises, and now face a troublesome scenario with rents additionally rising, and a scarcity of accessible houses to hire.”