Our quarterly market report is out – a review of the key trends in the national and local market.
As 2023 draws to a close, the economic backdrop is slowly and steadily uplifting, with the housing market proving its resilience.
NATIONAL HIGHLIGHTS
Improving outlook
Inflation experienced the sharpest decline in three decades, falling to 4.6% in October from 6.7% in September, now at its lowest rate since November 2021 (ONS). The economy is growing and incomes are rising, with wage growth at 7.7% in Q3 (ONS). With encouraging news, there has been an uptick in consumer confidence, increasing six points in November to -24, with improvements across all measures (GfK Consumer Confidence Tracker). The pace of house price moderation also appears to be steadying, with a net balance of 63% of property professionals reporting house prices falling in October, down from 67% in September (RICS).
Negotiating power
The sentiment is that mortgage rates may have peaked, attracting those who delayed moving over the last year. While there has been a slight softening in prices, the average house price in September 2023 was 25% higher than in September 2019, the September prior to the pandemic. This equates to an average rise over that period of £57,849 (UK HPI). Understanding local market dynamics and pricing realistically are crucial to successfully securing a sale during periods of price sensitivity.
Autumn Statement
In the Autumn Statement, the Chancellor announced cuts to employee National Insurance from 12% to 10%, saving the average earner £450 per year. Reductions to National Insurance for the self-employed have also been announced, affecting an estimated 39% of landlords with five or more properties. The government has committed to supporting the building of more homes, extending the mortgage guarantee scheme and increasing the national living wage. Long-awaited reforms to the leasehold system have started their progress through Parliament, with new laws promising ‘significant new rights and protections’ that could be in motion before the next General Election.
