Home worth progress stalled between August and September, though the common property worth was nonetheless £26,000 increased than a 12 months earlier, in keeping with official figures.
Throughout the UK, the common home worth in September was £295,000, which was £26,000 increased than a 12 months earlier, the Workplace for Nationwide Statistics (ONS) mentioned.
Common home costs elevated by 9.5% over the 12 months to September 2022, slowing from 13.1% annual progress in August 2022.
Throughout the UK, typical property values remained unchanged between August and September 2022, which additionally brought about the annual share change to sluggish, the ONS mentioned.
ONS deputy director for costs, Matt Corder, mentioned: “Home costs had been flat between August and September, the primary time now we have not seen a rise in nearly a 12 months.
“The autumn in annual home worth inflation is especially due to the sharp rise in home costs in September 2021 on the finish of the stamp obligation vacation final 12 months.”
The common home worth in Scotland elevated by 7.3% over the 12 months to September, slowing from a rise of 8.8% within the 12 months to August. The common home worth in Scotland in September was £192,000.
In Wales, property values elevated by 12.9% yearly, slowing from 14.3% annual progress in August.
The common home worth in Wales was at a document stage of £224,000 in September.
In England, home costs elevated by 9.6% yearly, slowing from 13.7% annual progress in August.
The common home worth in England additionally sat at a document stage of £314,000 in September, which was unchanged from August.
Inside England, the South West had the very best annual home worth inflation, with common costs rising by 11.9% within the 12 months to September. The North East had the weakest annual worth progress, at 5.8%.
The common home worth in Northern Eire elevated by 10.7% yearly, pushing typical property values to £176,000.
The home worth figures had been launched on the identical day the ONS revealed that inflation jumped to a higher-than-expected 11.1% in October – the very best charge since October 1981 and up from 10.1% in September.
Andy Sommerville, director at property knowledge supplier Search Acumen mentioned: “As we speak’s knowledge is additional proof of a turning tide for home costs.”
Nicky Stevenson, managing director at property agent group High-quality & Nation mentioned: “Annual home worth progress slowed in September towards a backdrop of rising rates of interest and shrinking disposable incomes.
“The mini-budget in the direction of the top of the month sparked unprecedented volatility within the mortgage market, one thing which is able to turn into extra obvious within the months forward.
“All eyes will now flip to Chancellor Jeremy Hunt’s autumn assertion, which is predicted to incorporate each tax rises and spending cuts.”
Jamie Durham, an economist at PwC UK, mentioned: “Whereas this knowledge is from a few months in the past and doesn’t mirror the influence of the mini-budget, it’s clear that the market was already beginning to lose momentum in September.”
Malcolm Webb, technical director at Authorized & Normal Surveying Companies mentioned: “As we speak’s knowledge means that home costs are actually beginning to plateau, with consecutive charge rises and wider financial pressures making use of the brakes on a few of the momentum of the final two years.
“Nevertheless, the market is presently one thing of a combined bag. Property costs are nonetheless increased than they had been on the similar level final 12 months and the slowdown that we’re seeing stays modest. Coupled with the scarcity of obtainable housing inventory, market exercise stays regular.
“Tomorrow’s finances assertion ought to present additional particulars on the federal government’s ambitions for the housing market, however even with out additional adjustments, potential patrons are doubtless already placing their very own funds below the microscope.”
Jason Tebb, chief government officer of property search web site OnTheMarket.com, mentioned: “Rising inflation, rates of interest and the upper value of dwelling imply patrons have much less shopping for energy, so sellers who don’t worth realistically could wrestle to generate curiosity.”
Marc von Grundherr, director of property agent Benham and Reeves, mentioned: “Whereas we could have seen a discount in purchaser demand as a consequence of increased mortgage charges, we’re merely not seeing any downward strain utilized to offered costs, regardless of a static charge of progress on a month-to-month foundation.
“That is largely as a consequence of the truth that patrons have been eager to transact at tempo with a view to safe the charges presently on supply, earlier than they climb even increased. In doing so, they’ve helped to keep up a constant stage of exercise within the course of which has saved the market afloat.”
Tom Invoice, head of UK residential analysis at Knight Frank, mentioned: “We count on mortgage charges to come back down and a way of stability to return as monetary markets reply positively to the brand new authorities.
“Nevertheless, the lending panorama is shifting after 13 years of ultra-low borrowing prices, which we consider will put sufficient downwards strain on costs in order that they return to their summer time 2021 stage.”
Avinav Nigam, cofounder of actual property funding platform IMMO, mentioned: “Finally, we nonetheless have a extreme scarcity of high quality, vitality environment friendly housing – each on the market and for hire. Our wants haven’t modified: all of us nonetheless want a roof over our heads.”