Housing market shows signs of life as prices edge up

Housing market shows signs of life as prices edge up

0:01 AM, 14th November 2024, About 3 weeks ago

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The English and Welsh housing market has shown signs of life in October, with average house prices edging up by 0.2% to £354,800 – the first monthly increase in six months.

That reverses the downward trend seen in September, the latest e.surv housing index reveals.

However, the recovery remains uneven across the country.

Southern England continues to lag behind, with London and the South East experiencing more significant price declines.

Average sale price of a home

The firm’s director, Richard Sexton, said: “Our data, which includes cash transactions, showed the average sale price of a home in England and Wales in October moved up to £354,800 – about £600 or 0.2% higher than in September – the first monthly rise in our index for six months and one that wiped out the fall of the previous month.

“Easing cost of living pressures, which have been helped this week by the cut in the Bank of England Base Rate, mean affordability will continue to improve as lenders’ standard variable rates follow suit.

“It remains to be seen if more cuts are in the pipeline.”

He added: “The markets suggest there will be more inflationary pressure ahead but for now, buyers should take advantage of the improved affordability.”

Budget announcements were largely negative

The index also highlights that the recent Budget announcements were largely negative – and the 2% Stamp Duty increase for landlords and second-home owners was unsurprising.

The firm says the rise reflects the government’s ongoing efforts to curb investment in these segments of the market.

However, what was unexpected is the government deciding to reinstate the lower Stamp Duty thresholds from April 2025, as originally planned.

This move could, e.surv warns, significantly impact first-time buyers, potentially increasing their Stamp Duty bill by up to £6,250 or more for homes valued over £500,000.

This could double the number of first-time buyers paying Stamp Duty and lead to a surge in overall Stamp Duty payments in regions like the Midlands, the North and South West England.


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