Price growth slowdown observed in recent months
The average price paid in both cash and mortgage-based transactions for a home in England and Wales in October was £375,275, up by some £2,800 on the previous month, according to new data.
The latest e.surv Acadata House Price Index for England and Wales also found that from the start of the pandemic in March 2020 to the end of September 2022, the average price paid for a home had increased by some £60,000, or around 19%.
Acadata analysts, however, noted that while house prices continued to climb in October, the rate of increase was slower than in August and September.
The area with the smallest fall in its annual rate of growth was Greater London, where price changes reduced from 2.8% to 2.2%.
The South West had the highest rate of growth for the fourth consecutive month, at 15.2%, but this is down from 18.5% in the previous month. The West Midlands was in second place for the third month running. By contrast, Greater London had an overall annual growth rate of just 2.2%, although 22 of the 33 London boroughs saw prices rise on an annual basis.
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“Given the pressure on the UK housing market seen in recent weeks, it is testimony to the robust nature of this market that prices continued to climb in October – albeit the rate of increase is notably slower than in August and September,” commented Richard Sexton, director at e.surv.
“We need to reflect on the fact that inflation and rising interest rates will impact the affordability of mortgage finance for many people, potentially affecting people’s ability to move home. Certainly, the rate of growth has slowed, as the numbers in the report show.
“However, we have almost full employment which is what really affects lenders’ appetite to lend. And now that financial markets have calmed, many lenders are back in the market with new mortgage products.”
Sexton added that the Autumn Statement on November 17 may also impact buyer sentiment.
“While this trend of slowing growth appears well set, things, as we have seen, can change quickly,” he said.
