Average UK house price was £3,000 lower in October than a year earlier

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The common home worth was £3,000 decrease in October than a yr earlier, in response to the Workplace for Nationwide Statistics (ONS).

The figures have been launched as a separate ONS report indicated that non-public rental costs have been rising at a report fee.

Inside London, home costs have been falling on the quickest fee since 2009, whereas personal rental costs have been rising at their quickest tempo since not less than 2006.

Throughout the UK, property values fell by 1.2% on common within the 12 months to October 2023.

This was a steeper decline than the lower of 0.6% recorded within the 12 months to September 2023.

Annual development in home costs has been usually slowing since July 2022, when it was 13.8%.

The common UK home worth was £288,000 in October 2023 – £3,000 decrease than 12 months earlier.

Common home costs over the 12 months to October 2023 fell in England to £306,000 (falling by 1.4%) and in addition decreased in Wales to £214,000 (falling by 3.0%), however elevated in Scotland to £191,000 (a 0.2% enhance).

Common home costs additionally elevated by 2.1% yearly in Northern Eire, reaching £180,000.

In England, the North East was the one area which recorded a rise in common home costs within the 12 months to October 2023 (0.2%), whereas London recorded the largest fall (a 3.6% lower).

ONS head of housing market indices Aimee North mentioned: “London noticed the steepest fall in common home costs and its annual inflation fee now stands at its lowest stage since 2009.

“Whereas housing costs are usually falling, the surge in rental costs continues with one other record-breaking enhance within the yr to November.”

The ONS’s newest report cautioned that home gross sales used to calculate the index have been significantly decrease just lately than traditionally. This may occasionally result in revisions being bigger than normal within the coming months.

In the meantime, its rental sector report mentioned that non-public rental costs paid by tenants within the UK rose by 6.2% within the 12 months to November 2023, accelerating from 6.1% within the 12 months to October 2023.

The 6.2% rise represents the most important annual share change because the UK data began in January 2016.

In London, rents rose by 6.9% yearly – the best annual share change in personal rental costs because the London data began in January 2006.

The ONS additionally launched figures on Wednesday displaying that UK inflation eased again to its lowest stage for greater than two years final month.

The speed of CPI (Shopper Costs Index) inflation slowed to three.9% in November, from 4.6% in October – the bottom stage since September 2021. The most recent determine was decrease than many economists had been anticipating.

Nicky Stevenson, managing director at property agent Positive & Nation, mentioned: “After a bumpy begin to 2023, the property market is trying more and more buoyant, and at present’s steeper than anticipated drop in inflation is prone to drive larger exercise within the early a part of subsequent yr.”

Andrew Montlake, MD of Coreco mortgage brokers, mentioned: “The most recent fall in inflation will convey some early Christmas cheer to each coverage makers and customers alike.

“This may little question have an effect on swap charges which in flip will permit mortgage lenders to proceed to cut back their product choices because the January mortgage gross sales look set to turn into much more intense.”

Mr Montlake additionally advised that the Financial institution of England base fee might be minimize “sooner fairly than later”, including: “This additionally has implications for the property market as an entire and we may see potential consumers return to the market in earnest early subsequent yr.”

Nick Leeming, chairman of property agent Jackson-Stops, mentioned “a minimal drop of simply 1%” yearly within the common UK home worth “is the clearest instance of the property market’s enduring power regardless of using the true property rollercoaster”.

He continued: “What we anticipate to see is a minor discount in property values total subsequent yr, however no nice dips as now we have seen from 2023 the power that underpins our bricks and mortar.

“Some home costs can be again in keeping with pre-pandemic ranges, permitting for a fairer taking part in discipline for each consumers and sellers. With the prospect of rates of interest taking place subsequent yr and a larger pipeline of provide rising within the spring, there may be cause to anticipate a stronger market because the yr progresses.”

He mentioned that, with the prospect of a normal election on the horizon, “this will immediate extra consumers and sellers to sit down and wait, with pre-election uncertainty typically impacting home financial confidence. It can be crucial that all year long, sellers proceed to just accept practical valuations, reflecting a market that has larger competitors as soon as once more.”

Jeremy Leaf, a north London property agent, mentioned: “Patrons and sellers are taking coronary heart from the pause in rate of interest rises and falls in mortgage funds and inflation, in addition to persevering with robust employment.

“Wanting ahead, the indicators for the brand new yr are extra promising than they could have been just a few brief months in the past.”

Steven Hargreaves, mortgage and safety adviser at Leeds-based dealer the Mortgage Co, advised web site Newspage: “We’re seeing a rise in first-time purchaser inquiries, which could be very encouraging, particularly compared to the earlier 12 months. Elevated confidence resulting from falling inflation and decrease mortgage charges is having a cloth influence on first-time consumers returning to the market.

“Provide remains to be a difficulty, nonetheless, historically we don’t have an inflow of recent properties to the market till early January.”