October sees the smallest 15-year rise in asking prices: Rightmove
Posted on Wednesday, 18 October, 2023
Rising levels of homes hitting the market have compelled sellers to price their properties more competitively. This shift has led to the typical seasonal increase in asking prices for October dropping to its lowest point since 2008.
While September saw a modest 0.2% uptick in asking prices, it serves as evidence that the UK housing market is more robust than anticipated, as per Home.co.uk. Despite increased borrowing costs, critical market metrics bear a resemblance to the pre-COVID years of 2018 and 2019. Factors such as Typical Time on Market, new instructions’ supply, and stock levels remain within a comparable range. However, asking prices have soared by 14.4%, and asking rents have surged by a staggering 52.6% since October 2018. The rental market’s strength has significantly supported the sales market, with soaring rents primarily due to a substantial decrease in available on-market rental properties. Although rental stock has surged by about 37% in the past year, it remains at historically low levels. The slow rise in rents is due to the increased supply of 19.7% over the last twelve months. In conclusion, the mix-adjusted average annualized growth in UK rents stands at 9.7%, with the North West leading regional growth at 15.0%. However, the annualized mix-adjusted average asking price growth in England and Wales is currently at -1.5%, a sharp contrast to the 3.9% increase in home prices observed in October 2022.