20 December 2023
If you are covering the October government house price index or the November private rental index, please see the following comment from Karen Noye, mortgage expert at Quilter:
"According to the government house price index, prices have dropped by 0.7% since September 2023. This means there has been an annual price fall of 1.2%, which makes the average property in the UK valued at £288,000.
"Elsewhere, private rental statistics, also released today, show that rental prices paid by tenants in the UK rose by 6.2% in the 12 months to November 2023.
"House price indices from other lenders which are more up to date point, to a market that rebounded a little in November, but it can often be difficult to get a true picture of how the market is fairing.
"What we know though is that with rental prices continuing to soar it means that there will still be competition in the market as renters lucky enough to have built up a deposit are looking to buy despite the serious economic headwinds as they at least have a little more control when they’ve purchased their own home.
"Next year is likely to be spotted with small monthly drops and rises in house prices as a lack of housing stock and higher rental prices help to keep the market afloat but only just.
"Similarly, the positive inflation figures this morning might potentially mean that the Bank of England is minded to reduce interest rates faster than originally predicted. This will help reduce mortgage rates and coax more people into the market and prices will resume their upward trajectory whether for good or for worse.
"We should be under no illusion though, things will still be difficult for borrowers in 2024 and anyone hoping for a return to ultra-low mortgage rates is likely to be disappointed."
