Jackson-Stops chairman Nick Leeming says the relatively modest change in house prices in today’s ONS figures reflect a market driven by varying supply levels and growing needs-based buyers
The average UK house price dropped by 0.5% in September 2023, after a month-on-month increase of 0.7% in August 2023, according to the ONS House Price Index published today.
Jackson-Stops chairman Nick Leeming says the relatively modest change in house prices in today’s ONS figures reflect a market driven by varying supply levels and growing needs-based buyers.
Whilst house prices are continuing to adjust and settle into their new normal, it is clear there is a powerful undercurrent of resilience that keeps the market steady, Leeming said.
Though the market is largely balanced, with broader analysis indicating that the UK housing market will exceed forecasts this year, the pendulum continues to swing drastically across different areas of the country, he added.
He explains that key commuter towns like Oxted and smaller cities like Norwich, Chelmsford and Truro, in October saw an unwavering level of interest from buyers which simply does not match up to the number of properties available to buy, helping to insulate prices.
However, in other local areas we know the situation has become much more equal, with sellers embracing greater realism in their asking prices in order to make sure offers turn into completions – a clear sign that the enthusiastic pricing of 2020 and 2021 has been left in the rear-view mirror, he added.
He adds: As we enter a traditionally quieter period for completions and instructions, with the national mood shifting from moving boxes to mulled wine, the recent news that some highstreet lenders are bringing sub-5% deals back to the table will be a well-timed boost of confidence to buyers. Along with the UK avoiding a recession once again in the third quarter, stability is the order of the day.
Together director of customer sales Alan Davison says a drop in house prices may be welcome news for FTBs, allowing those who have earlier been locked out of the market due to affordability issues to take their first steps on the housing ladder.
He said: As we enter 2024, we are expecting a further softening in demand from amateur BTL landlords for good quality, smaller homes. We are already seeing buy-to-let investors exiting the market, which is unsurprising given the succession of tax and regulatory changes, on top of higher rates raising monthly mortgage payments.