Your August 2023 Property Market Update

 

Interest rates have risen for a 14th consecutive time, with further increases expected. Average asking prices have fallen. Amid the nationwide news about the property market, it's easy to feel disheartened. However, remember that the national scene doesn't always reflect what's happening on your doorstep!

If you're contemplating a move, it's crucial to analyse your local housing market, as its trends could differ from the broader picture. At Quealy & Co we are happy to provide a free, no obligation valuation of your home to sell and to let. Book your free valuation.

Read on to find out all the latest UK property market news from your local and trusted estate agent in Sittingbourne - Quealy & Co.

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Asking Prices For UK Homes Falls at Sharpest Rate Since 2018

August saw its sharpest drop in asking prices for five years. This is a sign that the property market is continuing to slow.

The average asking price for a property new to the market is now £364,895. That’s 1.9% less than the previous in July, and £7,012 less in monetary terms.

While August is traditionally a slower month for property sales, the drop off is more than double the usual 0.9% fall in prices that are typical during the summer.

It’s not all bad news for sellers though. These lower asking prices, combined with increasing average earnings and the apparent downward trend of mortgage rates are tentative steps towards improved buyer affordability.

When looking at house price fluctuations over a longer period, average house prices remain almost 20% higher than they were this time four years ago.

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Interest Rates Rise Again

The Bank of England has raised the base interest rate for a 14th consecutive time to a 15-year high of 5.25%.

The increase will directly affect homeowners with variable and tracker mortgages, meaning an increased monthly payment.

The Bank of England boss, Andrew Bailey, confirmed for the first time that interest rates are likely to remain higher for longer to curb rising inflation.

The next interest rate announcement will be made on the 21st September, when many economists expect another increase to 5.5% – a figure they’re predicting will remain in place for the next 12 months.

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Mortgage Rates Cut

In some welcome news for buyers and homeowners whose mortgages are coming up for renewal, the ‘big six’ lenders have continued to cut their mortgage rates since July’s peak. 

According to property website Rightmove, the average five-year fixed rate deal is now 5.81%, down from 6.08% last month.

While the rate cuts are undoubtedly positive for customers, it’s not expected to last. Many economists expect the price wars between the major lenders to end soon amid increasing interest rates and a high inflation rate showing no signs of dropping significantly.

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More Property News From Quealy & Co

For more local property news and updates and a more detailed overview of the Sittingbourne, Sheerness, Minster, Faversham, Canterbury, Rainham, Gillingham, Chatham, Rochester and Maidstone, get in touch with Quealy & Co. We are your trusted local estate agent.

Call us 01795 429836 or email hello@quealy.co.uk to chat with a member of our friendly and experienced team about anything to do with moving home.