Asking prices for UK homes rose only marginally in October as more properties came onto the market, according to a survey on Monday, which also suggests some buyers are awaiting clarity on tax changes in the coming year. budget of the new government.
Asking prices rose just 0.3% in October, well below their 1.3% average for the month, property website Rightmove said.
The number of homes available for sale increased by 12% compared to the same period last year, and was the highest per estate agent since 2014.
Overall real estate market activity remained strong, with buyer demand increasing.
Prices increased by 1.0% compared to the previous year.
Tim Bannister, director of property science at Rightmove, said some buyers were awaiting a further cut in borrowing costs from the Bank of England as well as the Government’s Budget at the end of the month.
“Despite a budget-shaped cloud on the horizon, the overall picture remains positive for the market as we approach 2025. Market activity remains strong, despite price pressures on movers ” said Mr. Bannister.
“Once we have more certainty about the contents of the budget, hopefully followed by a second and third rapid reduction in the discount rate, we could see a further surge of optimism on the market, as was the case during the summer.
Monday’s figures follow other indicators of the British real estate sector which have shown renewed dynamism. Mortgage lenders Halifax and Nationwide both reported a rise in house prices in September.
British Finance Minister Rachel Reeves will present her first budget on October 30. She warned that some taxes would have to be increased, although she said Prime Minister Keir Starmer’s government would not increase taxes on “working people”.
The Times reported last week that Ms Reeves would not extend the increase in the thresholds at which people start paying stamp duty on home purchases beyond the scheduled expiry in March.
The BoE is expected to cut its benchmark discount rate at its next meeting in November and possibly again in December.
Rightmove said the fall in mortgage rates was running out of steam after falling rapidly when the BoE cut borrowing costs for the first time in more than four years in August.
He said average fixed rates on 5-year mortgages rose to 4.61% from 4.55% a week earlier, the first weekly increase since May.
Related News :