UK House Price Index: Market seizes up in September

The latest index shows that: –

• UK house prices remained almost static between August and September with a -0.2% change.
• Annually they were up by 1.3%.
• New Builds saw a huge monthly uplift of 5.7%, also up 4.6% annually.
• Existing stock only managed a marginal 0.8% increase monthly and a 0.6% annual increase.

Director of Benham and Reeves, Marc von Grundherr, commented:

“It’s been a long and weary road for the UK property market since the EU Referendum and so it will come as no surprise that the old legs continue to seize up as we approach the end of the year.

However, it plods on none the less and a strong shot of positive market sentiment is all that is needed to pick up the pace and put UK house price growth back on pole position.

Conditions remain favourable for buyers and prices are still robust albeit muted, so we should see a swift return to form once the Brexit debacle is finally put to rest which, touch wood, should be this side of Christmas.”

Founder and CEO of Stone Real Estate, Michael Stone, commented:

“It’s important to note that while the market is not only performing differently on a regional basis there is also a notable split in market activity across the type of property stock being purchased.

With new build homes fuelled largely by first-time buyers and those with an eye on a much longer-term investment, the sector remains unaffected by the buyer and seller uncertainty that is plaguing second and third rung transactions on existing properties.

In fact, the sector continues to go from strength to strength where price growth is concerned with some very healthy movement and you could say it is almost impervious to the woes of the wider market.”

Founder and CEO of Springbok Properties, Shepherd Ncube, commented: 

“Now remains as good a time as any to climb the ladder with interest rates yet again frozen for the foreseeable future and while house prices aren’t exactly affordable, they’ve not increased at the steep rates seen in previous years.

Transactions are also down and with a number of sellers still looking to transact, it’s very much a buyers market for those willing to negotiate with homeowners that may take a little persuading when it comes to adjusting their price expectations.”