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UK house prices grew 0.3 per cent in October

  • 14/12/2022
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UK house prices grew 0.3 per cent in October
Average house prices in the UK ticked up 0.3 per cent month-on-month to £296,422.

Figures from the Office for National Statistics (ONS) showed that this was a 12.6 per cent annual increase, an improvement on the 9.9 per cent yearly growth recorded the month before. 

ONS put this down to a £6,000 reduction in house prices between September and October last year after changes were made to the stamp duty holiday. 

House price growth was strongest in the North East, which saw a 17.3 per cent annual rise to £168,367. It also had the largest monthly increase at 1.9 per cent.  

London reported the slowest annual growth of 6.7 per cent to £541,720 and was the only place to see a monthly decline in prices with a 0.9 per cent fall. 

Most regions in England saw monthly changes of less than one per cent while the East Midlands and East of England reported zero growth in house prices. 

In England overall, house prices rose by 13.2 per cent annually to £316,073 in October. This was a 0.2 per cent uplift on September. 

In Wales, house prices increased by 11.8 per cent year-on-year and 0.1 per cent monthly to £223,824. Average house prices reached £194,874 in Scotland, a rise of 8.5 per cent while in Northern Ireland prices increased by 10.7 per cent to £176,131. 

Scott Clay, head of introducers at Together, said the rise in house prices “defied all odds” but warned that “this uplift is likely to be short-lived as a downturn is overdue”. 

Malcolm Webb, technical director at Legal and General Surveying Services, said the data showed that house prices were “losing some momentum” due to wider economic activity. However, he said property values were still up on last year and activity was steady. 

Webb added: “As we move into 2023, any further slowdown in house price growth could help improve affordability in certain areas and provide opportunities for first-time buyers to step onto the property ladder.” 


Buyer type 

On average, first-time buyers paid £247,092 for their homes which was a 12.9 per cent annual increase and a 0.3 per cent monthly rise. Former owner occupiers paid £347,117, which was also a 0.3 per cent monthly uplift and 12.3 per cent higher than last year. 

Terraced homes saw the highest increase in price with a 14.1 per cent yearly jump to £242,690. Flats and maisonettes reported the lowest growth in price, with an 8.6 per cent rise to £235,237. 


Property prices on way down 

Paul Holland, mortgage broker at Henchurch Lane Financial Services, said the property market had seen “gargantuan” price growth in the last two to three years adding annual increases of 10 per cent and over were not sustainable. 

Holland added: “When that happens, the wheels invariably come off. Of course we expect a downturn in prices over the coming 12 months, but this should be viewed more as a correction than anything negative. 

“Unless you purchased at 95 per cent last year and intend to sell quickly, this shouldn’t be viewed as too precarious a situation.” 

Jack Roberts, CEO of home moving platform SlothMove, said: “House prices have flatlined and it won’t take long for them to start their not-so-merry slide downward. When they do fall, the economic headwinds will see it will go far beyond a simple adjustment. 

“We’re already witnessing asking prices being slashed across the country, and these will increase as committed sellers realise swallowing their pride and offering reductions is the only sensible course of action.” 


Drop in buyer interest 

Mike Staton, director of Staton Mortgages, noted that buyers were already stepping away from the market. 

He said: “The property market appears to have broken up for Christmas. I can’t remember a December being this quiet, however there is more at play here than an economic crisis.  

“The World Cup and cost of living crisis, along with Christmas, have all contributed to an extremely slow December, but I do expect the industry to pick up in the New Year.” 

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