15 November 2023
If you are covering the latest UK house price data, please see the following comment from Karen Noye, mortgage expert at Quilter:
"UK house prices have dropped half a percent since August, which has now contributed to a house price fall of 0.1% over the year making the average property in the UK valued at £291,000.
"This morning’s lower inflation figure spells good news though for homeowners at least over the long term as lower inflation should hopefully mean that the Bank of England do not have to raise interest rates much further.
"However, the prevailing view is that interest rates will stay higher for longer causing the slump in buyer demand to be prolonged. At present, this has been coupled with sellers unwilling to put their properties on the market meaning that there does remain limited stock stopping any huge price crashes. But as more and more people find that their fixed rate mortgage deals coming to an end push may come to shove and properties will have to be listed. A surge in stock at a time of limited demand will be bound to take the froth out of what has been a turbocharged market over the last few years.
"Once the Bank of England feels confident to start reducing interest rates we should hopefully also see confidence return to the property market. The rental market continues to be incredibly tight which does help keep some demand in the ailing market."
