Residential Sales Market - the latest data

The current UK property sales market is slowing down according to the latest data from the Office for National Statistics, HMRC, Rightmove and Halifax Bank. 

The Office for the National Statistics has just published house price data for August 2023. 

·        The average UK house price was £291,000, which was little changed from 12 months ago.

·        The average house price in England remained little changed (0.0%) over the 12 months to August 2023 (provisional estimate), down from an increase of 0.7% (revised estimate) in the 12 months to July 2023.

·        The average house price in England was £310,000 (provisional estimate) in August 2023, £9,000 higher than the recent low point in March 2023.

·        The average house price in London was £536,000 in August 2023 with a negative annual inflation rate at 1.4% in the twelve months to August 2023.

According to the latest report from Right Move, the average asking price for UK homes rose by 0.5% in the month to 7 October 2023, which is the slowest rate for the same period since the 2008 financial crisis.

Halifax Bank reports ‘the fastest fall in annual house prices in 14 years in September 2023.’

The number of purchases has also gone down in the last 12 months of 2024.

The most recent data from HMRC shows that an estimated 86,190 transactions went through in July, a drop of 22% compared to July 2022, and 9% lower than in June 2023. The time to secure a buyer has also increased from 35 days in August last year to the current average of 57 days.

The current UK property market is facing a huge affordability issue as buyers relying on mortgages have been challenged by the high borrowing interest rates. Although the cost of a fixed 5-year mortgage has recently fallen below 5%, buyers are very cautious and hesitant to engage unless there is a good reason. Inevitably, the number of buyers able to borrow has tumbled. The Bank of England reported a 10% fall in mortgage approvals in August this year. Experts predict further annual house price drop but give various forecasts from 2% (Right Move) to 5% (Knight Frank), and 12% (analysts at Capital Economics).

To get an up-to-date valuation of your London property please contact Chase Evans Sales HERE