According to the report, the average UK house price was unchanged from September's total of £217,000 but £14,000 higher year-on-year.
The East of England saw the highest annual growth with prices increasing by 12.3% in the year to October. Growth in the South East was second highest at 9.1%, followed by London at 7.7%. The lowest annual growth was in the North East, where prices increased by 2.7% over the year.
Stephen Jury, Spokesperson for Plentific.com, had this to say: "2016 has been a rollercoaster of a year for London’s property market but are we on the verge of the big dipper? As a result of Brexit, earlier this year we found 1 in 5 were less likely to sell their home. Now, with a lack of willing buyers, there has clearly been a shift from a seller’s market to a buyer’s market. This will see further demand for tradesmen with more homeowners improving over moving."
Russell Quirk, founder and CEO of eMoov.co.uk, said: “It would seem that London has taken a back seat when it comes to the driving force behind UK house price growth, having suffered a 1.2% drop month on month, despite monthly growth creeping up by 0.1% across the UK as a whole.
The industry will really start to stutter to a halt now as Christmas fast approaches and so any panic over falling house prices should really be taken with a pinch of salt. Not only will buyer demand drop right off as thoughts turn to the stress of the festive season, but many sellers will also freeze the marketing of their property, ready to hit the ground running again in January.
Although there is a great marketing push behind the “Boxing Day Bounce” and the number of people that log on after the Queen’s speech to surf the property portals, this has little benefit to actual sellers, as those full of Christmas merriment are unlikely to be serious in their search. So it really is worthwhile to enjoy your time with friends and family and prepare for the onslaught of buyer interest that will come with the New Year.”
Andy Sommerville, Director of Search Acumen, comments: “October’s average house price in the UK continues to defy the dreary expectations that many had about the strength of property value growth following the Brexit vote. Naturally, stability during uncertain times like these will be welcomed by economists far and wide, but the housing crisis continues to burn a hole in our industry.
The pattern of rising prices since 2013 is symptomatic of a chronic shortage of new housing in the UK. Estate agents are reporting fewer properties on their books and RICS are predicting an ongoing recovery and escalation in buyer demand. This October, the average UK house price was £14,000 higher than the same month twelve months before and almost £25,000 higher than the year before that. As another month passes, dreams of home ownership drift further into the distance for many.
Thinking ahead to 2017, the political uncertainty that is likely to continue must not distract property professionals from the underlying structural issues that weigh the market down. The Chancellor’s investments announced in the Autumn Statement were broadly received with a cheer, yet they will only be a drop in the ocean without the full cooperation of all stakeholders in our market. There is no better time than the present to work together and effectively to stitch together the gap between supply and demand.”
Jeremy Duncombe, Director, Legal & General Mortgage Club, commented: “Yet again annual house prices continued their upwards trajectory in November, as a horde of potential buyers flooded the housing market up and down the UK.
Buyers are still struggling to get onto the property ladder, however, largely due to the chronic shortage of affordable homes. What we need is more schemes designed to stimulate supply, as opposed to policies that simply drive demand. Hopefully with the announcements in the Autumn Statement, this will be the Government that finally tackles the housing crisis once and for all.”
Richard Sexton, Director of e.surv, added: “Today’s results show a slight monthly downturn in house prices, with the most acute changes in London, and in particular prime property, which can in part be attributed to the changes in stamp duty rates.
Annually, however, prices have continued to rise, with strong growth in areas such as the East of England and the South East, pricing many buyers out of the market completely.
This situation is not desirable for those hoping to enter the market. The hugely regional picture also highlights the challenges the government is facing as it prepares its Housing Policy White Paper. However, with careful and progressive changes, the housing market could once again be accessible to all those hoping to get on the ladder.”
