November property market unusually strong compared to September
Due to the improved economic outlook the November property market was stronger than September, a rare phenomenon.
That is according to Knight Frank’s head of residential research Tom Bill.
He said: “Inflation has fallen to less than 5%, the best five-year fixed-rate mortgage is now under 4.5% and speculation around the bank rate increasingly relates to the timing of the next cut rather than the size of the next rise.
“Buyer sentiment has been lifted and produced a very belated autumn market. The signs increasingly point to a bounce next spring, provided a general election is not called in the first half of 2024.”
UK house prices increased for the third month in a row in November, Nationwide Building Society research shows.
London is seeing a high number of offers because prices stagnated during the pandeimc.
Average prices in prime central London are 17% below their last peak in mid-2015 while prices in prime outer London are down by 8% compared to mid-2016.
At the same time, UK house prices soared by 19% from before the pandemic in February 2020.
Bill added: “While the appetite of buyers and sellers should increase in 2024, at some stage this will be interrupted when Rishi Sunak calls the general election. The big question is when.”