Market News

UK house prices rise at slowest rate since 2008 - YAHOO FINANCE

OCTOBER 16, 2023

Fresh data from Rightmove and Foxtons shows a market finding its feet

UK house sales dipped 17% year-on-year and house price growth slowed at a pace not seen since 2008 this month, according to new data from property portal Rightmove.

The latest figures from Rightmove's house price tracker showed average new seller asking prices increased by 0.5%, or £1,950, to £368,231, the smallest increase at this time of year since 2008. The historic norm in October is a 1.4% increase.

"While this year’s much more subdued rise indicates that some new sellers are gradually heeding their agents’ advice to price competitively, agents report that other sellers still need to adjust their expectations on the price that they are likely to achieve in the current post-pandemic, lower-activity market," said Tim Bannister, Rightmove’s director of property science.

Meanwhile, the number of buyers enquiring for each available home for sale is 8% higher than the more normal market of 2019.

The proportion of homes that are finding a buyer has dropped from eight in every 10 at the height of the frenzy, to a more subdued sales rate of six in every 10, Rightmove added.

"In a market that agents describe as the most price-sensitive ever, buyers are likely to be on the look-out for homes that they feel represent excellent value, and to attract one of these motivated buyers, sellers need to price right first time," said Bannister.

Average fixed mortgage rates have now fallen for 11 consecutive weeks, with the average two-year fixed rate now below 6% for the first time since June, and the average five-year fixed rate dropping from 6.08% 11 weeks ago to the current 5.43%.

Meanwhile, the property market looked slightly more hospitable for renters, with fresh data from estate agent Foxton's showing that rental prices had seen no month-on-month increase in September.

Chart: Foxtons
Chart: Foxtons

New listings have been growing steadily through the year, with a 10% increase in supply of rental properties compared to the same period in 2022. As the supply of rental property increased and tenant demand has normalised, the number of new renters fighting for each instruction was down year-on-year and month-on-month.

In September, there was an average of 19 renters per new instruction across London, which was a 19% decrease compared to the previous year and a 17% decrease from the previous month.


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