LONDON: Buyer “jitters” ahead of chancellor of the exchequer Rachel Reeves’ first budget this month are muting a typical autumn bounce in house prices, according to property website Rightmove.
The average asking price for a UK home rose 0.3% month-on-month to £371,958 in October, Rightmove said yesterday, a smaller increase than expected at a time of year when the market typically picks up.
While sales and buyer demand are up strongly on last year, Rightmove said it detected hesitancy among some buyers who are waiting for cheaper mortgage rates and clarity over Reeves’ budget on Oct 30. Prices were also being held back by increasing competition among sellers, it said.The housing data is another indication that concerns over Reeves’ expected belt-tightening and tax-raising budget are weighing on household confidence and threatening to hold back the economy’s recovery.Gloomy warnings over the new Labour government’s dire fiscal inheritance have spooked consumers and businesses, causing confidence gages to slump – though stronger-than-expected retail data in October offset that narrative.
“Some estate agents report that some movers are now waiting for budget clarity and anticipated cheaper mortgage rates later this year,” said Tim Bannister, Rightmove’s director of property science. — Bloomberg