Home prices stalled last month after more than two years of growth as a sharp rise in mortgage rates heightened caution among homebuyers, according to Britain’s official research agency.
The Royal Institute of Chartered Surveyors (Rics) also forecasts a 4% rise in rents over the next year due to strong tenant demand and an imbalance between rental housing supply.
Across the UK, there was a 2% increase in the number of property professionals who reported that house prices were falling instead of rising, marking the 28th straight month of growth, according to Ricks.
However, there were regional differences in price trends. While prices are trending downwards in regions such as East Anglia and south-east England, researchers say they are still trending upwards in Scotland and Northern Ireland, but the pace of growth has slowed since the beginning of the year.
New buyer inquiries fell for the sixth month in a row in October, with survey feedback on buyer demand negative across the UK. Now, on average, it takes him 18 weeks to sell a property, compared to 16 weeks a year ago.
Rics Chief Economist Simon Rubinsohn said:
“As a result, activity is likely to decline in the coming months, making realistic pricing more important to close the sale.
“While the calmness in financial markets may provide some relief, it may be premature to assume that this will be reflected in an immediate reduction in lending rates.
“As far as the rental market is concerned, the imbalance between supply and demand still appears to be unusually high, and survey rental expectations remain high, and it is unlikely that this will change anytime soon,” Rubinson said. added.
Tom Bill, head of UK housing research at realtor Knight Frank, said:
“as Mini-budget impact Mortgage rates settle before stabilizing. Downward pressure on prices will diminish to some extent as the economic and political backdrop becomes less disruptive.
“However, we believe it is a reasonable assumption that house prices have now peaked after growing 25% during the pandemic.”
Then comes amid new evidence that the real estate market is sluggish. Taylor Wimpy said It has built fewer homes than originally planned this year, sales have fallen, and the cancellation rate has surged to 24% in the last six months, up from 14% the year before.
The day before, rival house builder Persimmon also Declining sales and prices of new homes signaled a slowdown in demand Cancellation rate increased to 28%.