The UK property market sent mixed signals in October, with experts describing it as simultaneously “resilient” and “calm.” On one hand, prices hit a new record high of $pounds$299,862, driven by a 0.6% monthly rise, the fastest since January.
Amanda Bryden, head of mortgages at Halifax, championed the “resilient” view. She pointed to strong buyer demand, evidenced by mortgage approvals reaching their highest level this year. However, she also tempered this by highlighting the affordability “stretch,” with buyers taking on longer terms and smaller deposits to cope with record prices and high living costs.
On the other hand, Matthew Thompson of Chestertons described the market as “noticeably calmer.” In his view, many potential buyers have “paused” their search, waiting for clarity from the Chancellor’s budget on November 26. Rumours of stamp duty reform have created a “wait-and-see” approach.
These two views paint a picture of a market with solid underlying demand that is currently being held back by uncertainty. Thompson noted that active buyers were still able to find opportunities, particularly with “sellers willing to negotiate.”
The consensus is that activity will likely pick up again once the budget is delivered. Thompson expects sidelined buyers to “re-enter the market” from December onwards, while Bryden predicts the long-term trend of gradually improving affordability (as incomes catch up to prices) will continue.