House prices 3.3% lower annually in September: e.surv

Prices have been edging lower since March, albeit with small monthly changes, and on an annual basis prices are 3.3% lower in September than they were a year ago. This is exacerbated by performance in the South East, with the figure sitting at 2.8% with London and the South East excluded. 

Despite this, market conditions are improving, with mortgage rates falling and mortgage approvals at their strongest level for two years.

Richard Sexton, Director at e.surv, comments:

“Our data this month reveals a mixed picture for the market in September with the average sale price of a home in England and Wales down marginally at £354,000 – about £200 or 0.1% lower than in August.

“The continued negative monthly changes since March, though small, have undermined the gradually improving year-on-year picture seen earlier with the effect that, on an annual basis, average prices in September are about 3.3% lower than a year ago.

“The negligible small reduction in prices reflects the mixed news for housing in the broader economy. While the cost-of-living pressures have eased for many households and falls in mortgage rates have helped affordability, the falls in interest rates predicted at the beginning of the year have not really materialised. The General Election, Euros and Olympics, all contributed to flat growth in the broader economy and likely took its toll on the housing market.

“On the horizon is the budget and while there is little expectation of help for buyers, there is a clear expectation from government announcements to date of tax rises that will impact them. This is likely to be especially true for vital first-time buyers who are often supported by the Bank of Mum and Dad.”