September is normally a month when the housing market resumes to some normality following the summer holiday season and the return of the schools. This September has been slightly different with moderate levels of activity. It feels that many potential house movers are enquiring and looking but not actually committing.
Many potential house movers are concerned there could be some changes introduced in the budget on 30th October which could impact the housing market. The Prime Minister has made it clear that the Government is going make some “difficult decisions”. This appears to have held many back from making decisions until they know what is in store for the future.
New landlords entering the market have been unnerved by the prospect of higher taxes and changes in regulation. Something urgent is needed to encourage landlords to buy otherwise the private rented sector will be looking at a distinct shortage of homes to rent in coming years which will result in catastrophic consequences for tenants.
The Bank of England met recently and held interest rates despite the hope of a further small reduction. It seems that the Bank of England want to understand what is in the Chancellors budget before lowering rates.
Data received from Rightmove shows that seller and buyer enquiries are up, along with agreed sales compared to this time year; however, the market was very stagnate last September due to rising interest rates so the comparison to last year could be showing a slightly distorted picture.
We expect October to be similar to September with steady levels of activity. The housing market needs to know where it stands and once the details of the budget are unearthed, we hope it can move on.