The onset of Autumn has seen the property market rise from its summer slump, figures show.
A report by the Nationwide saw the average UK house price jump 0.7% from August to September, bringing the figure to £266,094.
Not only that, but Zoopla’s House Price Index shows house sales were 25% higher in September than they were at the same time last year, showing the market is beginning to swing in to action for the next quarter.
Zoopla’s Richard Donnell, said: “Market activity is up across the board…We remain in a buyers market and greater choice of homes for sale will keep house price inflation in check into 2025.”
The surge in market activity and pricing has been attributed to the increased number of properties for sale, as well as the prospect of further mortgage interest falls. The latter, together with wages rising higher than inflation, is encouraging formerly hesitant buyers to finally step into the fold.
Second homes freed up for first-time buyers
Around one third of properties recorded are second homes, for which tax changes were introduced in the last budget, making them more expensive to rent out as holiday lets. At the same time, future changes surrounding increased council tax, are also believed to be imminent. There are also suggestions by the government that capital gains tax on second homes will be vastly increased.
Most of the second homes coming on to the market are two-bedroom properties which will appeal to first time buyers and those in their 30s looking to step up the property ladder. Meanwhile, banks are making properties more affordable by increasing the how much they are prepared to lend. Nationwide say it will give first-time buyers up to six times their annual household income. Lloyds and the Halifax have followed suit by both offering 5.5 times household income.
Mortgage rates are lower than they have been for some time, following the Bank of England base rate cut in August. To the extent, many of the big high street lenders are offering five-year fixed rates for less than four per cent. Many analysts are confident rates will continue to fall along with the base rate later this year and into 2025.