Prices and Demand Hold Firm

The annual growth in UK house prices remains solid but month-on-month prices have stabilised. An average of independent forecasters expect prices will end the year 5.8% higher than where they started, with price growth of 3.9% predicted for 2022. At 8.3%, annual price growth across the prime markets of England and Wales has pushed the average price of a prime market property to over £1.15 million. Double-digit annual price growth is evident across all regions except London. The reopening of many international travel corridors, along with a return to the office, should lead to a busy final quarter of the year for agents in the capital.

The search for space is set to be a legacy of the pandemic, with many homeowners still taking stock of their current homes and lifestyles as they readjust to new hybrid working patterns. Although it has fallen from the heady days of the spring, buyer demand remains above normal levels. At just under 74,500, the Bank of England report monthly mortgage approvals in August were at their lowest level in over a year, but still over 10% higher than the long-term monthly average (2015-2019). Demand for property in September was 12% higher year on year, with few signs of any significant drop off as autumn takes hold (Dataloft Demand Index)