House prices will fall slightly in September (-0.5%) as a result of deals agreed in June, when buyers were forced to factor in the cost of paying stamp duty once again, constraining budgets, according to the latest house price forecast from reallymoving.
However, this dip was short-lived with prices agreed between buyers and seller rising again once the stamp duty holiday deadline passed – likely to be in part due to limited supply of new properties coming onto the market creating greater competition for homes.
When those deals are complete in October, prices will rise by +1.3%, before flattening out to -0.1% growth in November when the average house price will be £341,492, reallymoving predicts.
Prices will be 4.3% higher year-on-year in September, with almost no change in October (-0.1%) and a +1.9% annual gain in November.
Rob Houghton, CEO of reallymoving, said: “The rate of house price increases over the last year has been remarkable but it’s been a difficult period for First Time Buyers and we welcome a return to more stable levels of growth.
“The housing market is in good shape heading into the autumn as the impact of the stamp duty holiday works its way out of the system, demand returns to more normal levels and once again the market proves its underlying resilience.
“Competition among cash-rich mortgage lenders has reduced borrowing costs to record lows, alongside a strong economic recovery and jobs market – all of which are boosting consumer confidence and prompting people to make their move now and take advantage of five-year fixed rate deals available at less than 1%. While interest rates stay low and supply remains constrained, despite monthly fluctuations the overall market trend will be steadily upwards.”
Reallymoving analysed data from 21,000 completed conveyancing quote forms to form the basis of its projections.