The UK housing market has experienced a more modest increase in property prices this October than many had forecast, as both buyers and sellers exercise caution ahead of the upcoming Budget announcement on 30 October.
According to Rightmove, the average asking price for a home in Britain rose by just 0.3% month-on-month, amounting to an increase of £1,199 and bringing the average price to £371,958. Typically, October is a robust month for the UK property market, with average price hikes of around 1.3%.
Tim Bannister, director of property science at Rightmove, noted that the slower growth in prices coincides with a significant increase in buyer choices, which have reached levels not seen since 2014. “With an abundance of options available, sellers must price their properties competitively to attract potential buyers,” he stated.
Estate agents have reported that many homeowners are delaying moves as they await clarity on the Budget and anticipate lower mortgage rates in the near future.
Chancellor Rachel Reeves is set to unveil her Budget later this month, and there are growing concerns that Labour’s policies may negatively impact the property market. Lucian Cook, head of residential research at Savills, remarked, “The uncertainty surrounding the Budget has made buyers more cautious.”
The competition among sellers is particularly fierce at the higher end of the market, where listings for four-bedroom detached houses and five-bedroom-plus homes have surpassed last year’s figures. Rightmove reiterated the current buyer’s market status, emphasizing the need for sellers to set competitive prices amid stretched affordability and a plethora of choices.
Despite the subdued price growth, Bannister remains optimistic about the overall market trajectory heading into 2025. “Market activity continues to be strong, even with affordability challenges for movers. With more clarity regarding the Budget and subsequent potential cuts to base rates, we may see a renewed surge in market optimism similar to that experienced last summer.”
Moreover, a separate report from Zoopla revealed that UK homeowners who purchased their properties in the last two decades are, on average, benefiting from gains of approximately £80,000. Izabella Lubowiecka, senior property researcher at Zoopla, stated, “Millions of UK homeowners are enjoying substantial increases in property value.”
The research also indicated that those who sold their homes in the past year realized an average profit of £65,000, despite the recent downturn in house prices.
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