UK Market Sees First Nationwide Price Rise Since 2022
UK House Prices on the Rise Again
According to the latest RICS UK Residential Survey for September, house prices are rising at a national level for the first time in two years. The report shows a +16% national price reading, a significant jump from the 0% result in August. This is the first positive price movement since October 2022.
While the overall picture is optimistic, not all regions are experiencing the same level of growth. Areas like the West Midlands, South West, and East Anglia are seeing a more modest increase in house prices.
Buyer Demand and Sales Activity Picking Up
Demand for homes has seen a clear increase, with a +14% net balance of buyers expressing interest in the market. This marks the third consecutive month of demand growth. Sales have also risen, albeit at a slower rate (+5% net balance).
Looking ahead, market sentiment remains strong with 23% of survey respondents expecting the sales market to grow further over the next three months. Even more optimistically, 45% believe the housing market will see continued growth over the next 12 months.
New Listings Encouraging Buyer Activity
September saw a surge in new property listings, with a +22% increase, nearly tripling the previous month’s figure of +9%. This has helped to meet growing buyer demand and may have been driven by homeowners looking to sell ahead of potential Capital Gains Tax (CGT) increases.
Renters Face Supply Crunch
The rental market continues to suffer from a severe imbalance, with tenant demand growing by +22% in September. However, the supply of available rental properties dropped by a concerning -29%. Many landlords are opting to sell their properties ahead of anticipated CGT changes, further reducing the rental supply and pushing rent prices higher.
How Much Can You Borrow?
Curious about how these rising house prices impact your borrowing potential?
Use ourHow Much Can I Borrow? calculator to find out how much mortgage you qualify for in today’s market.
How Much Can You Borrow?
Please note, this calculator only provides indications of possible borrowings. Contact us for a free bespoke contractor mortgage recommendation. Curious how these rate changes could affect your mortgage? Use our How Much You Can Borrow Calculator to find out. It’s quick and easy to use, giving you a clearer picture of your borrowing potential in today’s market.
Expert Insights
RICS President Tina Paillet commented on the growing pressure in the rental market:
“Demand consistently outstrips supply, leaving renters facing higher rents and fewer options. The proposed Renters’ Rights Bill offers better protections, but it doesn’t address the key issue: a lack of housing supply.”
MT Finance director Tomer Aboody also weighed in, noting that while property prices are rising, they are recovering from a lower benchmark after the turbulent market reaction to Liz Truss’ mini-Budget in 2022.
Why This Is a Golden Opportunity for Contractors
For contractors, self-employed professionals, and especially dentists, the current market presents a fantastic opportunity. With sales and mortgage activity ramping up, interest rates stabilising, and more homes coming onto the market, now could be the perfect time to secure a mortgage.
At Contractor Mortgage Solutions, we specialise in providing tailored mortgage advice for contractors, freelancers, and self-employed professionals. Whether you’re looking to buy your first home, expand your property portfolio, or remortgage for a better deal, our expert brokers are here to help.
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