"With downsizers and landlords adding supply to the market, and refinancing pressures mounting for borrowers, price growth remains constrained"
- Rob Owens - e.surv
Average house prices in England and Wales held steady in September at £355,100, marking the second consecutive month without change, according to the latest e.surv Acadata House Price Index. Despite this stability, values remain 3.0% lower than a year ago.
Following the stamp duty reforms in April, transaction levels are beginning to normalise. Sales activity in July and August returned to typical seasonal patterns, indicating the market has absorbed earlier distortions. However, confidence remains subdued as households and investors await the November Budget before committing to purchases.
Rob Owens, head of research at e.surv, said, “Market sentiment continues to be weighed down by economic uncertainty, concerns over employment, and speculation around potential tax changes in the upcoming November Budget. With downsizers and landlords adding supply to the market, and refinancing pressures mounting for borrowers, price growth remains constrained.”
Regionally, most areas recorded year-on-year price declines. London was the only region to see a modest annual rise of 0.5%. The South East experienced the steepest fall at 4.8%, followed by the East of England at 3.1%. Elsewhere, prices fell more moderately in the North East, Wales, and Yorkshire and the Humber, by 1.6%, 1.7%, and 2.5% respectively.
Despite the cautious environment, Owens remained cautiously optimistic, noting, “Despite current challenges, structural undersupply and latent demand from aspiring homeowners suggest that any Budget measures aimed at stimulating housing could quickly shift momentum.”
