October agreed house prices averaged at £180,353, up from September’s average of £178,538. In addition, year on year agreed house prices rose at a rate of 2.8 per cent to October 2007.
However the annual rate of growth is reducing as strong monthly house price gains in Autumn 06 fall out of the year on year comparisons.
Your Move's managing director, David Newnes, said: “House prices have been levelling out over the autumn, but we are still seeing some inflation in the rate of growth. There has been speculation that we will see a downturn in the property market, but Your Move’s data clearly shows consumer expectations for the property market remain optimistic.”
This month has seen a rise in the rate of agreed house price growth compared with September. The chaos surrounding the run on Northern Rock and the detrimental impact it had on consumer confidence in the UK mortgage market skewed agreed prices in September. But now, after two months of turmoil in the money markets, fear of economic uncertainty seems to be calming. The UK’s economy is still strong despite recent ambiguities surrounding its exposure to US sub-prime debt. And the continued shortage of housing in the UK is keeping the property market buoyant.
Newnes concluded: “September saw a dip in agreed prices – a direct reflection of the impact of US sub-prime chaos on confidence in the UK marketplace coupled with successive interest rate rises, and the confused introduction HIPs. But agreed prices have picked up in October with a rise of 1.2 per cent - an annualised growth rate of 14.6 per cent. Compared with the year on year rate of growth (2.8 per cent), confidence among sellers in the residential property market is clearly up this month.”
