The latest Government House Price Index states that the average price of a property in the UK was £268,349 in October 2021.
The report states that this is an annual increase of 10.2%, down from 12.3% in September 2021. The monthly price change was -1.1%.
James Forrester, Managing Director of Barrows and Forrester, comments: “A marginal decline following the final curtain of the Stamp Duty holiday was always on the cards but a 1% monthly drop is far from the market collapse that many have been expecting.
“The real proof in the pudding is the annual rate of appreciation and this is the third consecutive month where house prices have climbed by more than 10% year-on-year.
“Based on the market trends seen following the initial Stamp Duty holiday deadline, we can expect house prices to bounce back on a monthly basis ahead of the Christmas break, as many push to complete before Santa comes to visit.”
Craig Tonkin, Head of Sales at Bective, comments: “While we’re now starting to see signs of the market cooling across some areas of the UK, London continues to build momentum with one of the strongest rates of monthly house price growth of all regions.
“This has been driven by an influx of foreign interest at the top end of the market and we’re seeing larger family homes, in particular, go under offer at pace due to a severe shortage of supply.
“With growing demand for London homes, the capital looks set to enjoy a sustained level of house price growth throughout the remainder of the year and well into 2022.”
Nicholas Christofi, Managing Director of Sirius Property Finance, comments: “Although the end of the Stamp Duty holiday and a potential increase in interest rates is expected to cause a market slowdown early next year, we’re unlikely to see any notable reduction in buyer demand and therefore house price growth should remain steady, at the very least.
“A potential interest rates increase will cause many buyers to pause for thought before transacting. However, we’re already seeing measures to reduce this impact with the Bank of England removing the mortgage rates rise stress tests and a number of mortgage providers already starting to offer some very favourable deals.”