2023-10-16-莱坊-UK_Residential_Market_Update_October_2023_2页_386kb

UK residential market update for October 2023 indicates signs of stability after a volatile year marked by interest rate hikes. September data shows potential stabilization, with UK interest rates held steady at 5.25% after 14 consecutive increases, suggesting rates may have peaked. Economic indicators, such as low job vacancies and falling inflation, support this view.

Sales activity remains subdued, with transactions at 87,000 in August, below the 2022 monthly average. Mortgage approvals declined, reflecting continued downward pressure on prices. Annual house price data shows declines of around -5% from major lenders, while rentals are seeing high demand but also lower inquiries compared to pre-pandemic levels.

Prime London is notably resilient, with prices falling less than the national average, though sales and lettings are down. Outside prime London, prices experienced their largest annual fall since Q3 2009. Forecasts suggest UK house prices may fall by 7% this year and 4% next year as the economy stabilizes and sentiment improves.