HOW THE MINI BUDGET IMPACTED THE HOUSING MARKET

Back

Throughout the pandemic, demand significantly outweighed supply in the housing market which saw asking prices reach record highs. This began to cool as life returned to normal this year, and towards the end of Summer there were signs of the housing market returning to pre-pandemic levels.
 
Since the mini budget was announced in September, mortgage rates have shot up and there is a lot of uncertainty surrounding the housing market.

Sales Agreed

Data from Rightmove suggests that people are still looking to move, with the number of sales agreed remaining the same as before the mini budget announcements. There has been a 12% drop in the number of property viewings, suggesting that buyers are reassessing what they can afford with the changes to mortgage rates. 

Sales Falling Through

While you may think that the recent uncertainty could cause buyers to pull out, the number of house sales falling through has remained almost identical to pre-pandemic levels in 2019, and buyers are generally not pulling out of sales that have already been agreed. 

Price Reductions

The media has been publishing grim headlines recently about "house prices plunging across the UK", but it's important to remember that those prices are being compared to the unprecedented price increases we saw during the pandemic. The number of homes with price reductions now sits at 23%, significantly less than the average over the previous five years prior to the pandemic, which was 32%.

Property Demand

Demand is now in line with the last "normal" market – and still outweighs supply. Buyer demand is 20% lower than we saw in the incredibly busy October 2021, but is 4% higher than in October 2019.

Although buyers have greater choice than they did last year, the number of available properties for sale is still 30% lower than in October 2019.

If you're on the hunt for your dream home, click here to take a look at our recent listings.

In Summary...

While there is a lot of uncertainty at the moment, the current outlook isn't as grim as it may have appeared when lenders began to panic a few weeks ago. Things have begun to settle since the Bank of England raised the base rate to combat inflation, and while high interest rates are likely to be with us for a while — undoubtedly impacting mortage rates and affordability for some buyers – demand for properties still outweighs supply. 

If you're thinking of selling, book a valuation with our team to find out how much you could achieve for your property.

Thinking of selling your property? Book a free valuation today!

Book Now