Strong housing market fundamentals and an opportunity to buy before a potential interest rate rise are keeping activity robust despite the end of the stamp duty holiday, Rightmove said
UK property prices climbed 1.8% in October, continuing their upward trend to cost on average £5,983 more than the previous year.
According to Rightmove’s monthly house price index the price bump was the biggest rise at this time of year since October 2015.
The market was also in for what Rightmove called a “full house” for the first time since March 2007. There were price records in all regions of the UK and in all property market sectors – first-time buyer, second stepper and top of the ladder.
This ‘full house’ is an extremely rare event. The stock shortages started after the first lockdown, and they look set to continue with the underlying housing market fundamentals remaining strong, and an additional incentive to buy and fix your mortgage interest rate before a widely expected rate rise, said Tim Bannister, Rightmove’s director of property data.
Strong housing market fundamentals and a window of opportunity to buy before a potential interest rate rise are keeping activity robust despite the end of the stamp duty holiday, Rightmove said.
The number of sales being agreed was up 15.2% in September, versus 2019’s “normal market” comparison.
The data backed up previous assertions of a slowing supply of new housing stock on the market compared with demand. The number of new properties coming to market rose compared to summer, but not enough to satisfy strong autumn demand from buyers.
Mortgage interest rates are lower than they have ever been before and lenders are keen to lend in a competitive market, with employment and wage growth also robust. The number of sales agreed continue to be strong despite the end of the stamp duty incentives, said Bannister.
