UK Home Prices Rise at Slowest Pace Since 2008
UK Home Prices Show Smallest October Rise Since 2008
Asking prices for homes in Britain have experienced their slowest pace of growth for this time of year since 2008, according to property website Rightmove. This is yet another indication of how the increase in borrowing costs has impacted the housing market. The average asking price for homes rose by only 0.5% between September 10 and October 7 compared to the previous four weeks. This increase is well below the average rise of 1.4% typically seen during this period. Rightmove also reported a decrease of 0.8% in prices compared to the same time last year, while the number of agreed sales declined by 17% in annual terms.
Cooling Housing Market
This cooling trend in the housing market is not limited to asking prices. The Royal Institution of Chartered Surveyors has observed the most widespread falls in house prices since 2009 in September. This decline comes after a booming housing market during the COVID-19 pandemic. The Bank of England, which had raised interest rates 14 times consecutively between December 2021 and August this year, decided to pause its increases in September.
Mortgage Market Stability
Despite these challenges, Rightmove director Tim Bannister noted that the mortgage market has become more stable. After 11 weeks of falling mortgage rates, the market has seen a period of consolidation. Additionally, the number of buyers enquiring about each home for sale remains 8% higher than in 2019 before the pandemic. This is a positive sign indicating ongoing interest in the housing market.
In summary, the UK housing market is facing a slowdown in price growth, with asking prices increasing at their slowest pace since 2008. However, stability in the mortgage market and sustained buyer interest provide some optimism for the future.
