The UK housing market continues to cool from a period of strong growth during the pandemic.
Average house prices fell 0.4% month-on-month to £292,598 ($336,897) in October, the lowest in five months. The decline was also the steepest since February 2021, according to a Monday report from national mortgage lender Halifax Mortgage.
Compared to a year ago, average home prices are 8.3% higher. But annual growth was noticeably slower than his 9.8% in September, according to the Halifax UK House Price Index.
Halifax Mortgage Director Kim Kinnaird said: “Despite expectations of a post-pandemic slowdown, there is no doubt that the housing market suffered a major shock as a result of the mini-budget that saw mortgage rates soar. No,’ he said. report.
“Rising costs of living combined with already stretched mortgage affordability are expected to continue to pressure activity levels,” she added.
The report found that price increases slowed in all but the northeast of England in October, with similar slowdowns in Northern Ireland and Scotland.
The slowdown in growth is also a result of price corrections from the highs reached during the pandemic, Kinnaird said. A typical British house has gone up in value by £22,000 in the last 12 months and almost £60,000 in the past three years, she said.
Tom Bill, Head of UK Housing Research at Knight Frank, agrees. “It is a reasonable assumption that house prices have peaked after rising more than 20% during the pandemic,” he said.
But that doesn’t mean prices are on a steep downward trajectory, Bill said. “After 13 years of ultra-low borrowing costs, anyone buying or refinancing a home will find that things have changed. This is why we expect that.”
Matthew Thompson, head of sales at Chesterton’s, said the London prime market in particular will remain resilient. The London-based property agent received the same volume of inquiries from potential buyers as in October 2021.
“This again shows that compared to the national situation, the London property market has its own rhythm and remains an important destination for both buyers and investors,” he said. said.