October 2023: Despite the falls, average prices remain much higher than pre-pandemic levels

Sun 01 Oct 2023

According to the latest data from Rightmove, in August, the average asking price for newly listed properties in the housing market dropped by 1.9% (£7,012), marking the most significant August decline since 2018. They perceive that this price adjustment is an effort to attract buyers during the summer season, amid concerns over holidays, inflation, and the highest Bank of England Base Rate since 2008. Despite the decrease, average prices remain considerably higher than pre-pandemic levels.

Although sales agreements have decreased by 15% compared to the more stable year of 2019, the first- time buyer market is faring relatively better, down only 10%, influenced by rising rents and limited rental properties.

“Southern regions, including Harrow, have experienced significant house price declines due to high mortgage rates.”

Zoopla, meanwhile, reports that the housing market has been affected by high mortgage rates, resulting in the slowest annual house price growth (0.1%) since 2012. Their House Price Index for August 2023 showed a 34% drop in buyer demand and a 20% decrease in agreed property sales compared to the 5-year average (2018-2022).

Southern regions, including Harrow, have experienced significant house price declines due to high mortgage rates. They expect the number of property sales this year to be 21% lower than 2022, primarily due to mortgage rate impact. Despite this, faster wage growth is enhancing housing affordability and lower mortgage rates are anticipated to boost market activity in 2024.