Promising news for sellers and buyers: House price growth at near two-year high

[Susanap]

This is the news sellers have been waiting for at last! If things continue on this upward trend, the market will see improvements by spring. 👏 This confirms the market has now bottomed out and is slowly on its way up.

‘’BBC news today: House price growth at near two-year high
UK house prices in September rose by 3.2% compared with a year ago - the fastest rate for nearly two years, according to Nationwide.
The building society said that annual growth was the highest since November 2022, with terraced homes driving the increase.
It said rising incomes and mortgage rate cuts were improving affordability for buyers. Separate data from the Bank of England also showed mortgage approvals at their highest level for two years.

House prices have been relatively stagnant in the last year, as activity in the UK housing market has been limited.
But many commentators suggest, with interest rates expected to fall, demand from buyers could now pick up’’

Hang in there sellers and good luck with your house sales 😊🙌

I don't think Labour will do anything to stimulate the housing market tbh.

Well they made quite a few promises in their manifesto for what that's worth (time will tell). Including a pledge to build 1.5 million new homes during term and the launch of a permanent mortgage guarantee scheme. Which will give first time buyers the chance to buy homes before international investors.

Oh, sure, but there’s a vast difference between pledging to build houses and saying “hey everyone up to 600k, no stamp duty for nine months!!!!!”

Who knows what they will do during their term?

I find the property market bamboozling as agrrr if you’re upsizing you’d be happy to lose 10% on the cheaper home you’re selling to then pay 10% less on the larger more expensive home you’re buying. However I just don’t think it always works like that. In our area of east London flats haven’t really gone up in price in 8 years, but family homes are astronomical and have increased so much. The prices I see at the minute are shocking. It’s because there is a real shortage of family homes in the area, any new builds they squeeze in are always flats.

Of course, don’t understand your point?

We will find out soon enough.
As it stands, landlords are selling up to avoid a big CGT bill, which will reduce the amount of rentals and increase the price of the ones left due to demand. This paired with the Stamp duty increase puts youngsters in a difficult situation as this leaves them with no affordable rentals and no relief on stamp duty.

This is labours chance to give something back to all the youngsters who voted for them and I would be very surprised if they don’t come up with something to help get them on the property ladder.

First time buyers would be better off securing a property now as I assume there must be loads of landlords’ ex rentals on the market right now.
Also before the stamp duty increase kicks in and before prices do stabilise or go up.

If I cared enough, I would place a bet.

But not when it comes to politicians. None of ‘em are worth it.

Agreed.

Ditto. Reduction after reduction.

I can't see the market picking up in the Spring significantly, beyond the small Spring bounce that tends to occur seasonally, especially if Labour do stop the SDLT reduction (not certain yet). The fact is that housing, and the stock market are in a massive bubble and bubbles have a habit of bursting. If the housing market stays stagnant for a long period, that would certainly be preferable for the greatest number of people, just not for younger people who would like to buy now.

I think most people have now seen through the various schemes to 'help' FTBs. The Tories have ruined things enough things without the need for Labour to continue to do so.

Agreed. It's bizarre as it is bad for the economy and society in so many ways.

Are they higher asking prices or sold prices? How many serious buyers are there? Are transactions up, down, or about the same? I’d need more detail before either celebrating or sobbing into my cornflakes.

Well it’s the Nationwide house price index so I assume it’s sold prices but will not include cash buyers but rather those getting nationwide mortgages.

It’s confusing enough being a first time buyer as it is. They don’t know whether they are coming or going at the moment with so much conflicting advice online and in the media. The news today is very promising and optimistic and I just hope they are listening to the experts.

Not entirely sure landlords will be able to sell anything before the budget. Mortgages won’t get through if the property is not vacant, not that there’s time left to get one organized. Takes months to remove a tenant. Possibly other cash buying landlords could pick up a bargain, which could be good news as the discount the vendor will have to give would be substantial and drive down prices of similar properties.
What Labour really should have done was brought forward the EPC C rating, and announced to follow it up with a B rating. Now that would have flooded the market.