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Property demand ahead of Autumn Budget

ended 21. October 2024

Overnight, Rightmove revealed that average new seller asking prices rose by just 0.3% (+£1,199) this month to £371,958, far lower than the average seasonal 1.3% monthly increase at this time of year. Given that markets are pricing in a rate cut next month, is this a sign that sellers (and/or agents) are acknowledging buyer uncertainty ahead of the Budget? Also, have you seen potential sellers put transactions on hold until the Budget is behind us and another rate cut is in the bag? If another cut does come on 7 November, could asking prices spike in November?

4 responses from the Newspage community

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Dariusz Karpowicz
Director at Albion Financial Advice
The property market is tiptoeing on eggshells, with sellers showing unprecedented caution ahead of the upcoming Autumn Budget and potential rate cuts. Just look at that measly 0.3% rise in asking prices - it's practically whispering compared to the usual seasonal roar of 1.3%!
Indeed, we're seeing a growing trend of sellers adopting a 'wait and see' approach. Many are strategically timing their market entry for after the Budget announcements and the anticipated rate cut, hoping for more favorable conditions.
The prospect of a base rate cut in November, coupled with recent positive inflation data, could be the catalyst the market needs. However, the Budget remains the wild card that could either energize or dampen market confidence. If both deliver good news, we might see that pent-up demand finally unleashed, potentially driving a significant upswing in asking prices.
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Editor
Rohit Kohli
Director at The Mortgage Stop
Many buyers, especially at the higher end of the market, are being more cautious, anxiously awaiting the Halloween Budget's potential tricks and treats. Although interest rates have eased, continually rising house prices still haunt first-time buyers, as saving for deposits remains a daunting challenge. A plateau in prices would be a welcome pause in the madness. We need more support from lenders to bring aspiring homeowners in from the cold—current products like track record mortgages and £5k deposit schemes are a good start, but the high barriers to qualify mean too few can step onto the property ladder.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
It feels like everyone is holding their breath, waiting for the Budget, to see how bad it is going to be, before making any major financial decisions; like buying or moving home. This isn't unexpected however, we see this before any major political or economic event, be that a budget, or a general election. Once the event is over, we see a spike in activity as the market plays catch-up and that pent up demand is released. How much of a spike we see will very much depend on how bruised people feel once the Chancellor sits back down again on the 30th of October.
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Patricia McGirr
Founder at Repossession Rescue Network
Sellers are stalling, sensing buyer nerves ahead of the Budget. If rates drop in November, I think we can expect a price surge. Right now? Everyone’s waiting to see what happens next.