01638 515352
estate agents

The average price of a home increased by 3.2% over the past 12 months, following a 0.7% rise in the month of September. Britain’s biggest building society says this is the fastest annual growth recorded since November 2022.

The average property price is now roughly 2% below the all-time highs recorded in summer 2022.

Industry reaction:

Tom Bill, head of residential research at Knight Frank, said: “Falling mortgage rates led to an increase in house price growth in September, with demand also boosted by buyers putting off decisions until after the election. However, the mood has since turned more cautious ahead of the Budget following suggestions by the government it will be painful. We think prices will end the year a few percent higher but sellers should be aware that buyer exuberance will be in short supply in the final months of the year.”

 

Nathan Emerson, CEO of Propertymark, commented: “As 2024 has progressed, it has been extremely positive to see a firm trend of growth emerge across the year within the housing market. We have seen the economy settle down to a position that provides far greater consumer confidence and although we are still at the very start of the journey regarding base rates, we are starting to see lenders introduce improved competitive offerings when it comes to mortgage deals, which is a firm foundation for confidence and growth over the coming months.”

 

Guy Gittins, CEO of Foxtons CEO, remarked: “Further positive house price growth in September suggests that market momentum has continued to build and there’s no doubt that buyer activity has strengthened following the cut to interest rates seen in August.

“We anticipate that the market will now go from strength to strength as we head into the Autumn season and what is traditionally a very active period for the UK property market and we’re already seeing more enquiries made, more offers submitted and more sales agreed, all of which bodes very well for the remainder of the year and beyond.”

 

Ed Phillips, CEO of Lomond, commented: “Stability has been key to the returning health of the UK property market and this stability has been gradually building since interest rates were held this time last year.

“However, it’s clear that the first base rate reduction in four years has helped to revitalise buyer activity, with house prices rising at their fastest rate in two years. With market confidence now at a high, this will only help to drive further positivity as we enter into the Autumn selling season.”

 

Verona Frankish, CEO of Yopa, said: “The current outlook is an extremely positive one when compared to just a year ago and we’ve seen considerable improvements on all fronts, with buyer demand climbing, more homes going under offer and sellers achieving stronger prices in the process.

“As a result, house prices are now just two per cent off the record highs seen during the summer of 2022 and we could well see a new record set before the year is out.

“Of course, it’s important to remember that the base rate still remains significantly higher than we’ve seen in recent years and whilst buyers are returning with confidence, we’re not quite out of the woods yet with respect to transactional volumes, which still remain someway off the previous pace.”

 

Matt Thompson, head of sales at Chestertons, stated: “Pent-up demand, lower interest rates and sub-4% mortgage products resulted in more house hunters entering the market in September. In response to the uplift in buyer activity, and with looming changes to Capital Gains Tax in the upcoming Autumn Budget, we have also seen more sellers putting their property up for sale. We expect September’s level of market activity to continue in October but sellers will review their position following the Autumn Budget whilst some buyers await the next Bank of England announcement on interest rates in November.”

 

Iain McKenzie, CEO of The Guild of Property Professionals, added: “The biggest surge in house price growth in two years will be met with open arms by homeowners looking to sell.

“House prices usually remain robust at this time of the year, as there is still time to buy, complete and move in before Christmas.

“The final quarter of 2024 will hopefully be more of the same, if current market conditions remain in place. While continued positive growth mostly benefits sellers, it brings a sense of stability that buyers will appreciate once they have signed on the dotted line and do not want their property to devalue.

“Affordability concerns still loom for first-time buyers, but as earnings are currently outpacing house price growth, this should go some way towards bridging the gap for those who are close to getting their foot on the ladder.

“In a month’s time, the new Chancellor will take to the despatch box to unveil her first budget and give the property industry a good indication of how this government will engage with it.

“The theme of the Autumn Budget will likely focus on decisions that aim to grow the economy, while spending carefully, which will in turn keep the markets stable and avoid any shock waves to ripple down to the housing market.

“We need to see a renewed push to help people own their own home and any incentives from the Government to help further that goal would be welcome by buyers and sellers alike.”

tpoTSI-ACdpscmpmoneyshieldhomeLetrightmoveonthemarketPattinson Auction