House prices drop as figures show monthly decrease – but value expected to ‘bounce back’

House prices: Expert discusses 'interesting' pricing differences

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Average house prices decreased by 1.1 percent between September and October 2021, compared with an increase of 0.8 percent during the same period a year earlier. However, UK house prices increased by 10.2 percent in the year to October 2021, down from 12.3 percent in September this year.

House price growth was strongest in Wales where prices increased by 15.5 percent in the year to October.

Despite the property market being active, the lowest annual growth was found in London.

Prices increased by 6.2 percent in the year to October 2021.

The Royal Institution of Chartered Surveyors’ (RICS) October 2021 UK Residential Market Survey reported buyer demand picking up slightly.

However, the lack of available property on the market means homebuyers are still facing high prices, despite the slight decrease in October.

Scotland saw house prices increase by 11.3 percent in the year to October 2021.

In the same year, England saw a rise of 9.8 percent, whilst Northern Ireland saw an increase of 10.7 percent from July to September 2021.

Industry experts have also commented on the latest House Price Index news.

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Managing Director of Barrows and Forrester, James Forrester, commented: “A marginal decline following the final curtain of the Stamp Duty holiday was always on the cards but a one percent monthly drop is far from the market collapse that many have been expecting.

“The real proof in the pudding is the annual rate of appreciation and this is the third consecutive month where house prices have climbed by more than 10 percent year on year.

“Because of the market trends seen following the initial Stamp Duty holiday deadline, we can expect house prices to bounce back on a monthly basis ahead of the Christmas break, as many push to complete before Santa comes to visit.”

Bective’s Head of Sales, Craig Tonkin, added: “While we’re now starting to see signs of the market cooling across some areas of the UK, London continues to build momentum with one of the strongest rates of monthly house price growth of all regions.

“This has been driven by an influx of foreign interest at the top end of the market and we’re seeing larger family homes, in particular, go under offer at pace due to a severe shortage of supply.

“With growing demand for London homes, the capital looks set to enjoy a sustained level of house price growth throughout the remainder of the year and well into 2022.”

The imbalance between supply and demand means that many are fighting for their dream home.

Last year, many Britons decided to sell their home during the pandemic, with more space and an office on their desired list.

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However, others left the moving process until now, despite there being a huge shortage of property listings.

According to one expert, new buyer enquiries increased during the month of October.

Guy Gittins, CEO of Chestertons, commented: “At the end of October, new buyer enquiries were up 18 percent compared to this time last year when we already had the added incentive of the Stamp Duty holiday.

“We have seen demand being driven by buyers who didn’t manage to agree a deal within that time frame.

“As buyer demand remains unsatisfied, properties have been going under offer increasingly faster making for an extremely competitive market.

“Chestertons’ data analysis for October reveals continuously strong demand from London property buyers.

“The agency’s branches saw a 22 percent increase in the number of offers being made and a 26 percent uplift in agreed sales compared to September.

“The market remained under pressure with 18 percent fewer properties available for sale in October than the previous month.”

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