Insight: The Housing Market October 2024

It’s useful to review the latest Halifax House Price Index as well as other property market data to gain an overview of trends both nationally and here in Kent. For the final quarter, there’s positive news for buyers and sellers across the country with clear momentum in recovery. The Kent picture is more complex, currently lagging slightly, but we explain this in more detail below. Overall, there’s optimism for those looking to move in the coming months. Here we look at the latest data, showcasing key statistics at both national and Kent levels.

The Headline Stats and Facts

• Average selling price: £293,399 (an increase of +0.3% from last month)
• Property price increases: Annual rate of growth is +4.7% (up from 4.3% last month and 2.3% the month before)
• Interest rates: 5% (unchanged from 1^st August 2024)
• Inflation: 2.22% (just above the Bank of England’s target of 2% and largely steady with a very small drop)
• RICS net balance score: The RICS data shows gaining momentum in recovery. New buyer enquiries are at a net balance of +15%, up from +2% last month (and -6% the month before). Agreed sales have moved into positive territory, now at +7%, up from -2% last month.  New instructions are also increasing, with a net reading of +7%, up from +2% last month.

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 161 days on the market, only slightly up from last month.
• Number of properties for sale: The number of properties for sale is up 9% compared to the same time last year.
• Average selling price in Kent: £421,054 (continuing the slight decreases we’ve seen in recent months).

What Does This Mean?

Amanda Bryden, Head of Mortgages at Halifax, stated: “Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up by over 40% in the last year and now at their highest level since July 2022.”

Agreed mortgage data is great news, and better than that, combined with RICS new buyer enquiries at +15% the market must be in new positive territory. RICS new buyer enquiries were at -47% a year ago so the outlook for sellers must be good right now.

However, as always, data must be reviewed in the wider context of time, but also at the regional level. At a national level, the gains are notable and indicative of a growing positive trend, bringing prices back up, covering the lost ground of the last 12 months. It shows that bricks and mortar remain a strong a worthwhile investment. Nonetheless, we must remain aware of affordability issues, particularly for first time buyers who, with a typical first time property now costing £232,769.

We anticipate interest rates will be cut further and this should continue to boost buyer activity. Overall, at the national level, it’s likely that house prices and market activity will increase towards the end of the year.

What About Kent?

The Kent housing market is robust, but, like much of the South East, it’s lagging behind other areas of the country. Again, context is vital here. Firstly, Northern Ireland is largely inflating the national average figures in a disproportionate way. Secondly, Kent, along with other southern areas, saw a higher boom during the post-pandemic time, with the move out of London.

When we dig into the Kent data, there’s a healthy and strong recovery beginning. While prices are marginally down, they still remain 3% higher than in 2021. Furthermore, the houses that are inflating the time on market figures are disproportionately larger detached properties.

As always, it’s essential to consider your own specific needs and desires within the wider context.

Your House Move

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