UK house prices jump in October amid speculation about rising interest rates

The UK housing market is charging higher prices despite the end of stamp duty holidays and the supply crisis. Photo: Matt Crossick / PA / EMPICS Entertainment.

The average UK house price rose by £ 5,983 ($ 8,027) in October, jumping 1.8% as the housing market frenzy continued.

According to the Rightmove Monthly Home Price Index, this is the highest monthly percentage increase at this time of year since October 2015.

In addition, this is the first time since March 2007 that Rightmove has recorded a full house, with all market sectors and all regions of Great Britain having reached new price records in the same month.

The rapid and continuous turnover of goods for sale and a window of opportunity to buy before a possible rise in interest rates appear to have overcome the final expiration of all stamp duty incentives.

“Although more and more properties are entering the market, the level is still not sufficient to replenish the stock that is being recovered,” said Tim Bannister, director of real estate data for Rightmove.

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“The stockouts started after the first foreclosure, and they look set to continue, with the underlying housing market fundamentals remaining strong and an added incentive to buy and fix your mortgage interest rate before a widely expected rate hike. “

The number of current sales is up 15.2% in September compared to the same period in 2019, which is the best “normal market” comparison.

This high level of demand is blocking a resumption of depleted available-for-sale inventory despite a continuing upward trend in properties being marketed, Rightmove said.

The latest weekly snapshot shows that the number of new sellers entering the market is still down slightly from the same period in 2019, but only 3.2% compared to 9.3% for the entire period.

This persistent imbalance, with demand exceeding supply and leading to record prices, presents an opportunity for homeowners looking to sell and cash in if they downsize or don’t need to buy another property.

The window is also open for movers who want to sell and buy again ahead of a likely rise in interest rates, which is widely expected as the Bank of England seeks to control the resurgence of inflation.

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In these “complete house” market conditions, with many homes being sold quickly and sellers having a choice of competing buyers, buyers who have already sold their own property under contract or have nothing to sell will be in control. most powerful negotiation to secure their ideal home.

“We advise sellers to start planning their moves for 2022 now by taking advantage of the blue skies and organizing their marketing, so they’re ready to go,” said Mark Ross, Managing Director of Redbrik.

“With buyers willing to wait to allow chain construction, sellers can be confident to come into the market and get off to a good start over their competition. “

Realtors report that homeowners who are motivated to move put their property on the market before they’ve set their sights on a subsequent purchase, and once they’ve sold their own subject to contract, their new “power” status. purchase ”helps them secure a suitable property when it hits the market.

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