Last week, The Guardian newspaper reported that UK house price growth flatlined in September with a stronger slowdown expected in the coming months as a combination of soaring inflation and mortgage rates makes moving unaffordable for many writes Nick Aston of Ruddington’s Benwell Daykin Estate & Letting Agents.
The latest snapshot from the building society Nationwide comes at the end of a torrid week for the housing industry as lenders pulled 40% of available mortgages from the market after Kwasi Kwarteng’s mini-budget (Friday 23rd September 2022).
Lenders began suspending products after the Chancellor’s sweeping tax-cutting plans triggered a sell-off in financial markets and raised expectations for higher interest rates. The volatility made it increasingly difficult for lenders to price deals.
A typical UK home cost £272,259 in September, a zero increase on the previous month and the first time house prices did not grow month on month since July last year, according to Nationwide.
Annual growth in prices dipped to 9.5% this month, the first time house price growth has slowed to single digits since last October.
On a more positive note, the East Midlands was one of only three UK regions to show an increase in annual house prices in September. Some commentators are expecting UK house prices could fall by at least 10% next year if the economy sinks into recession and mortgage rates rise sharply, making house moves unaffordable for many.
So is now a good time to sell?
At Benwell Daykin we are still selling properties and still seeing good buyer demand albeit not at the levels seen earlier on this year. Prices are now as high as we are likely to see for the foreseeable future, so if you are thinking of selling you should do so without delay!
If you’d like to book a free, no obligation, valuation of your property – to see how much it’s now worth – please contact Nick or one of the team at Benwell Daykin on 0115 990 2007 or by emailing info@benwelldaykin.co.uk.
{Top image by Towfiqu Barbhuiya via unsplash.com}
