House prices in the UK fell month on month for the first time in 15 months in October as part of the reaction to the political uncertainty that loomed over house buyers and financial markets, Nationwide Building Society said.
The 0.9 per cent drop marked the first monthly decline since July 2021 and was the biggest decrease since June 2020, when the UK was in coronavirus lockdown.
October was a month dominated by mortgages, and the fallout from former chancellor Kwasi Kwarteng’s now-disgraced and dropped mini-budget that sent the pound and the markets spiralling down while mortgage rates increased.
People have been forced to pull out of buying a house as mortgages were removed and replaced with higher interest alternatives.
Annual house price growth slowed sharply to 7.2 per cent in October, from 9.5 per cent in September, Nationwide said.
Across the UK, the average house price in October was £268,282 — and the housing market looks likely to slow in the months ahead, the society added.
“The market has undoubtedly been impacted by the turmoil following the mini-budget, which led to a sharp rise in market interest rates," Nationwide chief economist Robert Gardner said.
“Higher borrowing costs have added to stretched housing affordability at a time when household finances are already under pressure from high inflation.”
Alice Haine, personal finance analyst at the Bestinvest investment platform, said the fall in prices was the chill from the October upheaval.
“Britain’s property market is showing clear signs of strain with prices falling almost 1 per cent in October compared to September,” she said.
“It means the pandemic-fuelled, red-hot market that became the norm over the past couple of years — as buyers sought out bigger properties in the race for space, aided by temporary stamp duty incentives to boost the market — is finally at an end with a much more sobering reality going forward."
The outlook for the property market is far from rosy in the near term, Ms Haine said.
A combination of rising rates, falling real wages, a looming recession and sky-high inflation all dampen affordability levels, she said.
The first of the coronavirus lockdowns, which began in March 2020, led to a fall in house sales and prices as people were generally not able to move home.
“On the ground, new buyer inquiries almost dried up as uncertainty about the future direction of mortgage repayments added to cost-of-living concerns," said Jeremy Leaf, a north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors (Rics).
“Activity has slowly started to resume as mortgage rates began to stabilise and are now starting to fall. Buyers are negotiating hard as they strive to take advantage of good mortgage offers, while prices continue to be supported by lack of stock.”
Jonathan Hopper, chief executive of Garrington Property Finders consultancy, said: “Sellers who just months ago could take their pick of offers are now biting off the hand of a strong, proceedable buyer — even those asking for a price reduction.”
Tom Bill, head of UK residential research at estate agency Knight Frank, said: “Government stability will help underpin transactions, but we are witnessing a fundamental shift in rates take place after 13 years of ultra-low borrowing costs that will lead to price declines.”
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Mohammed bin Zayed Majlis
Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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