The latest Hometrack UK House Price Index for September has revealed that while the average property price in the UK is down 0.5% compared to a year ago, and -1.5% in the South East and Eastern regions, property prices are still rising in Scotland, up 1.6% compared to September 2022.

Hometrack expects mortgage rates to fall slowly in Q4 2023 and believes that the number of buyers will increase once mortgage rates get below 4.5%. Below is a summary of the report.

Demand ticks higher off a low base
The decline in buyer demand over the summer has started to reverse. Enquiries to estate agents are up 12% since the August bank-holiday weekend. This improvement is off a low base - demand remains 33% lower than a year ago and in line with 2019. This uptick in enquiries is partly seasonal but also reflects improved consumer confidence, which is at a 2-year high, amid expectations of lower mortgage rates.

Hometrack says that demand has improved in all areas, noticeably in southern England where enquiries for homes have been weakest in 2023. Demand is up 19% in the South East over the last three weeks and is 16% higher in London. The number of new sales agreed has also increased and is closely tracking 2019 levels, supported by homebuyers having a much greater choice as levels of inventory return to pre-pandemic levels.