You are here: Home - News -

House price growth to slow down over autumn – Reallymoving

  • 13/09/2021
  • 0
House price growth to slow down over autumn – Reallymoving
The housing market in England and Wales is settling into a calmer period of growth as the impact of the stamp duty giveaway works its way out of the system and the post-lockdown surge in demand begins to subside.
Reallymoving analysed data from 21,000 completed conveyancing quote forms to form the basis of its projections.
Their research showed that the period of sharp prices rises has come to an end with a return to more steady growth on the horizon. It also revealed that house prices are set to increase by 0.7 per cent over the next three months, with the strongest gains in October.

The availability of the cheaper mortgage deals is driving demand, against a backdrop of limited supply. Overall, annual growth is returning to more normal levels, following months of double-digit increases.

House prices will increase by 0.7 per cent over September to November based on deals agreed this summer, with low mortgage rates and new flexible working arrangements continuing to drive demand over the longer term.

According to Reallymoving’s data, conveyancing quote volumes returned to normal levels for the time of year in July and remained unchanged in August, further indicating that buyer demand is settling back down.


House prices will dip

The market will see a marginal dip of 0.5 per cent in September as a result of deals agreed in June, when buyers were forced to factor in the cost of paying stamp duty once again, constraining budgets.

However, this decline will be short-lived with prices agreed between buyers and seller rising again once the final stamp duty holiday deadline has passed. This is likely to be in part due to limited supply of new properties coming onto the market creating greater competition for homes.

When those deals complete in October, prices will rise by 1.3 per cent, before flattening out to a 0.1 per cent decline in November when the average house price will be £341,492.

Rob Houghton (pictured) CEO of Reallymoving, said: “The rate of house price increases over the last year has been remarkable but it’s been a difficult period for first-time buyers and we welcome a return to more stable levels of growth. The housing market is in good shape heading into the autumn as the impact of the stamp duty holiday works its way out of the system, demand returns to more normal levels and once again the market proves its underlying resilience.

“Competition among cash-rich mortgage lenders has reduced borrowing costs to record lows, alongside a strong economic recovery and jobs market – all of which are boosting consumer confidence and prompting people to make their move now and take advantage of five-year fixed rate deals available at less than one per cent.

“While interest rates stay low and supply remains constrained, despite monthly fluctuations the overall market trend will be steadily upwards.”

There are 0 Comment(s)

You may also be interested in