According to the latest release of the UK House Price Report, the average price of a property in the UK rose marginally by 0.5 per cent in October 2023 to £368,231, equivalent to approximately R3.274 million. However, compared to the same period last year, the average price decreased by 0.8 per cent.
The report also mentions that despite the increase in prices, buyer activity has been very active for moderately priced properties. The number of buyer enquiries per house for sale is now 8 per cent higher than before the 2019 outbreak, showing how active the buyer's market is. It also means that the market is now very price sensitive, so accurate pricing is becoming critical.
Typically following the summer holidays, new sellers usually increase their asking prices, but this year's relatively flat rate of increase (up just 0.5 per cent) suggests that some new sellers are gradually heeding the advice of their agents and adopting a more competitive pricing strategy.
According to Rightmove's analysis, overpricing can scare off potential buyers and make it difficult to regain their attention even if the price is subsequently reduced. Sellers who are unwilling to adjust their pricing expectations to the current level of market activity may find that their homes fail to attract buyers.
The report notes that market confidence is now returning and the market is returning to a more normal and regular pattern that existed before the epidemic. This means that transactions will be smoother for reasonably priced properties.
On the other hand, according to the latest September rental market report released by UK property website Homelet, average rents in the UK rose by 10.1 per cent annually to £1,276 (about Rs11,300). In the North West, where supply is tight, average rents rose by 10.4 per cent annually to £1,006.
A lack of supply and demand continues to be the main reason for the rise in rents, with Rightmove's figures showing that the average queue for viewings has increased to 25 people per rental property over the past five months, compared to 2019, when there are typically only six phone or email requests for viewings per property.
It has been pointed out that by this calculation, only 4 per cent of the total number of people will be successful in renting a property. In comparison, the acceptance rate for the Russell Group universities, the UK's leading school group, is between 15 and 16 per cent, so it is clear that renting a home in the UK is more difficult than applying to a prestigious university.
