Weakest October for asking price increases since 2008

Recent data from Rightmove reports a 0.5% increase in the asking prices of homes on last month. Whilst this may seem to buck current trends in the housing market, which has previously seen prices fall at their fastest rate in 14 years, experts have pointed out that prices typically increase this time of year, with today’s data indicating that the slowest October increase since 2008.

Chairman of Cornerstone Tax – the UK’s leading property tax experts – David Hannah comments on how prospective buyers ought to react to today’s announcements.

This news comes at a time when the rental market continues to be plagued by historic supply and demand imbalances. Data from HomeLet reveals that the average rent on newly agreed rental contracts reached £1,276 in September, a 10.1% year-on-year increase. Several market trends have underpinned these problems, including a record number of landlords leaving the property market with data from Cornerstone Tax finding that 15% of buy-to-let landlords are selling up due to rising costs.

Under the backdrop of an overheated rental market, many tenants are looking to take their first step on the housing ladder after a pause in rate rises from the Bank of England has resulted in the subsequent cooling of the mortgage market. The UK’s biggest lenders have also caught onto this trend, through the introduction of new products in a bid to attract new home buyers and the continued slashing of mortgage rates.

Hannah asserts that this news should offer some hope to those looking to escape the rental market, suggesting that we will see a flurry of activity in the housing market towards the end of the year and early into Q1 2024.

Chairman of Cornerstone Group International, David Hannah, discusses the state of Britain’s property market, he said,  “Whilst today’s news may put off first time buyers in the short term, long term trends indicate that more opportunities will crop up for generation rent – as illustrated by falling housing prices and a flurry of new mortgage deals”