Inflation falls to lowest level in more than two years

Today has been a busy day for property related news.  Not only do we have new information about house prices, but we also have positive indications about inflation.  The latter will come as a relief to many of us, as we have learned that the inflation rate is the lowest it has been for the last two years.

House Prices

HM Land Registry has today published the UK House Price Index for October 2023.

The October data shows on average, UK house prices have fallen 0.7% since September 2023. There has been an annual price fall of 1.2% which makes the average property in the UK valued at £288,000.

In England, the October data shows, on average, house prices have fallen by 0.8% since September 2023. The annual price fall of 1.4% takes the average property value in England to £306,000.

London saw the lowest annual price growth, with a fall of 3.6%.

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Inflation

The Office for National Statistics has confirmed today that inflation for the year to date has fallen to 3.9%, due in part to the reduction in average fuel prices, a commodity which so many of us rely on heavily.

Although the Bank of England target inflation rate is 2%, there are still many reasons to take encouragement from the news, and as a cause for some celebration.  From our property perspective, it is hoped that lenders will now have more confidence to offer lower mortgage rates since one of the metrics which determines mortgage pricing (swap rates) is also falling.  That is certainly a reason to be positive about the new year ahead, and we will be providing regular updates accordingly.

If you need any further information or legal advice, including conveyancing of a property in England, please contact our designated UKRE team Anna Douglass, Alastair Hargreaves, Caren Vidamour, Naledi Odiseng, who will be delighted to assist.