>> the property market has held steady this year
October witnessed a modest increase in average asking prices (+0.5%); however, November saw a decrease of -1.7%, with average house prices at £362,143.† This decrease in house prices is typical for this time of year, as sellers tend to get a bit more competitive before the New Year.
Wales saw a monthly decrease of -1.6% and a yearly rise of 0.1%.† Halifax data backs this up, showing a 3.9% decrease in the average house price in Wales compared to last year.† Scotland, the UK’s most robust region, experienced a -0.9% monthly change, but a 1.9% annual increase. And while it’s easy to get caught up in the monthly and yearly changes and “see a cooling of the market and assume this is bad news”, David Plumtree, Connells Group Estate Agency CEO, says that “when we zoom out and consider the data we have over a number of years, we can see what’s actually happening. The pandemic certainly brought an inflation of prices as demand was uncharacteristically high and interest rate rises and cost of living have brought that back into line.
The market we are in now has been allowed to regain its breath. Prices have stabilised since a spike in 2022 but homes are still gaining in value.”^^
>> what’s happening with rent prices?
Rent prices continue to rise, with the UK seeing an average annual increase of +9.56%.† Rents in Wales are 1.29% higher than last month and 7.88% higher than October 2022, reaching £863 pcm. Scotland, which has seen some of the most substantial rental growth over the past year, witnessed a slight dip in month-on-month rents, with Homelet reporting a -2.56% decrease. However, this decrease is small when compared to Scotland’s average annual increase of 12%.†
Given that the market in 2023 outperformed many predictions, buyers, sellers, and investors can look to the future with increased confidence. And don’t forget about Boxing Day, when online visits to Rightmove skyrocket into the millions, making it a prime time for sellers and buyers to be in the market.^ You can learn more about the Boxing Day trend here.
>> a look forward to 2024
As we step into 2024, the property market is expected to stabilise as both the market and consumers adjust to increased borrowing costs.† The slight rise in house prices in October, coupled with the Bank of England keeping the Base Rate at 5.25%,* has offered some comfort to sellers, buyers, and landlords. It hints at a more stable housing market. Rightmove’s data supports this, indicating that buyer demand aligns with the 2019 level, partially attributed to “two consecutive Base Rate holds”.†
Want to find out how this may have affected your property’s value or how much you could let your property for? Find out today!
Correct at the time of publishing – 28/11/2023
Sources:
† Rightmove HPI [11] ; Halifax HPI [10] ; Homelet [11]
^ Rightmove Google Analytics, Daily sessions on Rightmove 1st Dec 2022 – 28 Feb 2023
^^ Connells Group 2023
MKT/CG/UKON/221123