Average house price grew 0.9% in October, according to index
The demand for homes fell 15% year-on-year, as home movers put plans on hold due to the market uncertainty following the mini-budget, according to Rightmove.
The property website’s October index shows demand fell 15% in the last fortnight compared to the same period last year, although it was still 20% higher than in 2019, pre-pandemic. Demand among first-time buyers fell 21%.
Average house prices rose 0.9%, slower than the five year average in October of 1.2%.
Rightmove said the “rapid rise in average mortgage interest rates” has caused some would-be home-movers to “pause their plans”.
Tim Bannister, director of property science at Rightmove, said: “What’s going to happen to house prices is understandably on the minds of many home-movers right now, especially following the market uncertainty after the government’s mini-budget.
See also: New buyer demand in UK falls for fifth successive month, says RICS
“There has been no immediate effect on prices, but the trend of a slight softening in the pace of growth continues. New sellers coming to market in the month have been pricing strongly, and the number of homes that were already on the market seeing a reduction in price is still well below the long-term average.
“It will take a bit of time for the market to settle in to a new, more ‘normal’ level of activity following over two years of market frenzy, especially with new developments happening almost daily at the moment.”
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