The common UK home value edged down by -0.3% (£794) in September, following a modest rise in August.
The typical dwelling now prices £298,184. Over the previous 12 months costs have grown by 1.3%, the slowest annual charge since April 2024.
This is in keeping with the most recent Halifax House Price Index which suggests this slight month-to-month dip in costs displays a housing market that has remained broadly steady, costs are up +0.3% because the begin of the yr.
Commenting on the most recent figures Halifax head of mortgages Amanda Bryden stated: “While affordability stays a problem, a comparatively decrease mortgage charge surroundings and regular wage progress have helped assist purchaser confidence.
“Although the broader financial outlook stays unsure, with the affordability image regularly bettering, we proceed to count on modest progress via the rest of the yr.”
Quilter mortgage professional Karen Noye commented that the market continued to tread water as patrons and sellers adjusted to affordability pressures and a cautious lending surroundings.
“The authorities’s plans, introduced yesterday, to reform the house-buying course of might assist scale back prices and delays over time. The proposals to require sellers to offer key data up entrance and discover binding contracts are designed to make transactions faster and extra clear. But whereas these adjustments might enhance confidence, they won’t clear up the deeper affordability problem that continues to weigh available on the market.
Financial buffers
She added: “The newest ONS information additionally recommend households might have far much less of a monetary buffer than beforehand thought. The revised figures halved the estimated family financial savings ratio for late 2022, implying many households saved considerably much less throughout the post-pandemic restoration than earlier believed. With smaller financial savings cushions, extra households might discover it tough to soak up increased mortgage prices or construct deposits.”
Noye concluded that with borrowing prices nonetheless excessive, weaker family funds and potential tax adjustments on the horizon, home costs had been prone to stay broadly steady within the close to time period, with regional traits reflecting native provide and demand moderately than a transparent nationwide route.
ASK Partners chief govt Daniel Austin stated the uptick in property costs over the yr supplied a glimmer of optimism, however progress remained subdued as excessive borrowing prices proceed to weigh on patrons.
“The Bank of England’s choice to carry charges supplies restricted reassurance, with persistently elevated fastened mortgage charges delaying significant reduction for householders and first-time patrons alike.
“The development sector continues to face headwinds from rising construct prices, planning delays, and a scarcity of expert labour, whereas buyers and builders stay motivated by the enduring supply-demand imbalance. Resilient sectors comparable to co-living, build-to-rent, and storage proceed to draw capital, reflecting their long-term fundamentals at the same time as broader exercise cools.
He added: “With world volatility excessive and home coverage nonetheless in flux forward of the Autumn Budget, the MPC is holding regular. Markets are nonetheless pricing in a charge lower earlier than year-end, however with inflation unlikely to return, mortgage pressures will persist. For buyers searching for stability amid market uncertainty, together with the affect of renewed US protectionism, UK actual property debt stays a compelling possibility, providing capital preservation, regular revenue, and insulation from fairness market swings.”
