The UK Housing Market Took A Slide Last Month

The UK Housing Market Took A Slide Last Month
Paul Allison, CFA

about 2 months ago2 mins

What’s going on here?

The British housing market took a slide in September, sending hopeful sellers back by more than a few places.

What does this mean?

UK house prices were staying true to the country’s spirit, remaining stoic and unemotional in the face of economic uncertainty. But a tremble on an upper lip quickly opened the floodgates, and property prices headed south, fast. September’s 0.4% drop from the month before means folk sold their keys for nearly 5% less than the same time last year, according to UK lender Halifax. That difference was slightly smaller in London, while the South of England saw the biggest change.

UK house prices

Why should I care?

For markets: I’m holding out for a bargain.

September’s price dip was a lot less steep than August’s, though, which Halifax believes is a sign that prices are about to hit their lowest point. But property experts disagree: they reckon prices will end up about 10% lower than before they started falling. Either way, inflation will likely call the shots. If it hits the Bank of England’s 2% target over the next few months, mortgage lenders will anticipate lower interest rates and bring down their own borrowing rates. Would-be homeowners, then, should keep an eye on the next inflation reading, out on October 18th.

Zooming out: Alexa, play Bills, Bills, Bills by Destiny’s Child.

The British rental market’s moving in the complete opposite direction, with online property firm Rightmove saying rental payments jumped by 12% in August from the month before. That means regular tenants are scrambling to find £1,300 ($1,590) on average every month to put a roof over their heads. And unfortunately for renters, those bills could build: interest rates are still sending landlords’ mortgages higher, and those increases tend to be funneled into rents with a delay.

UK rents


All the daily investing news and insights you need in one subscription.

Learn More

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG