👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

House market ‘back on track’ as prices near record, but Budget fears loom

Published 07/10/2024, 11:33
Updated 07/10/2024, 11:40
© Reuters.  House market ‘back on track’ as prices near record, but Budget fears loom

Proactive Investors - Britain's housing market appears to be “firmly back on track” following news prices moved within touching distance of record highs in September, industry members say.

Halifax reported earlier on that prices ticked up by 4.7% in September to £293,399 in a third successive month of growth.

This marked the fastest uptick since November 2022 and left prices around £1,000 off record highs.

“The recovery is real but not rocket-fuelled,” Garrington Property Finders chief executive Jonathan Hopper commented.

“Prices are rising fastest in more affordable locations as buyers who are fed up with waiting to seek more home for their money.

“Nevertheless the market is firmly back on track and on course to end the year on a high.”

Anticipations are for the Bank of England to cut base interest at least once more this year, further fuelling reductions to mortgage rates.

“The prospect of cheaper mortgages and the sense that now is the time to strike before house prices climb too high has spurred many would-be buyers into action,” Hopper said.

Bestinvest analyst Alice Haine added: “Provided inflation remains in check and interest rates continue to ease, housing market activity is expected to continue strengthening in line with easing affordability levels.

"For now, optimism is back with the housing market in better health than a year ago when mortgage rates were still alarmingly high.”

Some warned the uptick in demand had been fuelled by people pushing through deals before this month's Autumn Budget though.

Yellow Brick Mortgages director Stephen Perkins noted borrowers had been rushing to push through moves before potential tax changes took "the wind out of their sales".

“The focus now is on the autumn Budget and the hope is that it doesn’t undo all the momentum that has grown over the summer and put us back where we started,” Andrew Montlake, director at mortgage broker Coreco, said.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.