Estate agents have reported falling house prices across the UK, ending more than two years of growth

Home prices begin to fall! Estate agents reported declines across the UK ending more than two years of consecutive growth, according to RICS

  • Estate agents across the UK have seen house prices fall for the first time in 28 months
  • RICS survey says price growth ‘has come to a halt’
  • Rents are expected to grow by 4% over the next year due to the mismatch between supply and demand
  • The number of buyer inquiries fell again in October, down from September

Real estate agents reported falling home prices across the country in October, according to the latest RICS survey, ending a 28-month period when house prices were rising.

In September the survey, which takes the opinions of RICS member estate agents across the UK, revealed a net positive rating of 30 per cent when agents were asked about house prices, while in October this had been felt sharply to 2 per cent. Cent.

RICS calculates net valuations by taking the number of dealerships reporting a price drop from those reporting a rise. For example, if 30 percent reported a rise and 5 percent a decrease, the net balance would be 25 percent.

Fall: RICS real estate agents reported lower home prices in the month of October

Fall: RICS real estate agents reported lower home prices in the month of October

However, the overall figure masks regional price differences. Respondents in regions such as East Anglia and South East England were most likely to notice lower prices, registering net balances of -31 per cent and -16 per cent respectively.

Conversely, respondents based in Northern Ireland and Scotland continued to report an upward trend in house prices, even if the pace of growth was slower than earlier in the year.

Looking to the future, respondents across the UK now see that, in general, prices will fall somewhat over the next year.

The poll’s commentary states that the October rating indicates that “home price growth is halting.”

At the same time, the number of buyer inquiries fell for the sixth consecutive month to minus 55 per cent, down from minus 36 per cent in September.

Moreover, for the second consecutive month, the number of inquiries fell across all regions of the UK.

Home prices fell in October across the country according to RICS real estate agents

Buyer inquiries across the UK are down, according to RICS, the second month they've fallen

Buyer inquiries across the UK are down, according to RICS, the second month they’ve fallen

Simon Robinson, RICS Chief Economist, commented: “The latest reaction to the RICS survey provides further evidence of buyer caution in the face of a sharp rise in mortgage costs.

As a result, volume of activity is likely to moderate again over the coming months, and realistic pricing is now even more important to closing the sale.

“Stability in financial markets could provide some relief although it may be too early to assume this will be reflected in lower lending rates any time soon. However, the employment picture remains critical to the medium-term outlook and for now. , it’s still going strong.

Savills, the real estate agency, predicted that prices would fall 10 percent next year before rising 1 percent in 2024. As recently as May, the estate agent was forecasting only a 1 percent drop in 2023, but the sharp increase in rates Mortgage led to this. to a darker look.

Simon Wall of Estate Agents’ Stephanie McNab said: “Strength has certainly left the market here, although activity remains at what would be considered a reasonable level.

“There is more buyer power with more difficult initial negotiations and renegotiations after the survey. Hopefully the calm in the economic outlook will improve things.”

“At the same time, the number of new companies listed on the market also continues to decline with a net balance of -17 percent of respondents nationally citing a decline.”

Marion Currie of the Galbraith Group in Dumfries and Galloway, Scotland, said that while there was still strong interest in available properties, interest was waning for the winter.

“The pool of buyers who missed out on other properties over the past two years is still there but dwindling,” she added.

In the rental market, rents are expected to continue to rise as demand for tenants continues to rise at a strong pace, with 46 percent net worth of respondents indicating an increase in October.

However, at the same time, owner instruction slipped again according to net worth -14 percent of respondents.

Within a year, respondents expect rents to have increased by about 4 percent nationwide

What to do if you need a mortgage

Borrowers who need to find a mortgage because their existing fixed-rate deal is coming to an end, or because they’ve agreed to buy a home, are urged to act but not panic..

Banks and building societies are still lending and mortgages are still being accepted with applications accepted.

However, rates change quickly, and there is no guarantee that deals will stick and won’t be replaced by mortgages that charge higher rates.

This is Money’s best mortgage rate calculator powered by L&C that can show you deals that match the value of your mortgage and property.

What if I need to re-travel?

Borrowers should compare rates, talk to a mortgage broker, and be prepared to work to secure a rate.

Anyone with a fixed-rate deal that expires within the next six to nine months should consider how much a remortgage will cost now — and consider a new deal.

Most mortgage deals allow a fee to be added to the loan and then only charged when you take it out. By doing this, borrowers can secure a rate without paying expensive arrangement fees.

What if I’m buying a house?

Those who have agreed to buy homes should also aim to lock in prices as early as possible, so they know exactly what their monthly payments will be.

Homebuyers should beware of overexerting themselves and be prepared for the possibility of home prices falling from their current high levels, due to high mortgage rates limiting people’s ability to borrow.

How to compare mortgage costs

The best way to compare mortgage costs and find the right deal for you is to talk to a good broker.

You can use our best mortgage rates calculator to show matching deals for your home value, mortgage size, term needs and flat rates.

Be aware that rates can change quickly, so the advice is that if you need a mortgage to compare rates then speak to a broker as soon as possible, so they can help you find the right mortgage for you.

> Check out the best fixed rate mortgages you can apply for


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