Building society Nationwide announced recently that UK house prices had increased by 0.9% between September and October thanks to scarcity of supply and a strong labour market. Robert Gardner, Chief Economist at Nationwide, said the rise probably reflected the “constrained” supply of properties on the market, adding that there was “little sign of forced selling, which would exert downward pressure on prices, as labour market conditions are solid and mortgage arrears are at historically low levels”. The country is seeing robust wage growth and high employment levels, giving many homeowners the ability to absorb higher mortgage costs.

"The UK property market is gaining back some momentum... boosted by a pause in interest rates"

Other analysts attributed the uptick in prices to a growing conviction that borrowing costs have already peaked – the Bank of England base rate has now been held at 5.25% for two consecutive meetings of the Monetary Policy Committee amidst signs that its efforts to reduce inflation are now working. Nicky Stevenson of estate agents Fine & Country, said that the UK property market was “gaining back some momentum after the summer and boosted by a pause in interest rates. The Bank of England’s surprising decision to hold off on a rate hike in September was a relief for buyers, who were waiting for economic stability before committing to a purchase.”

Matt Thompson, head of sales at Chestertons, agrees, saying: “With interest rates being held at 5.25% for the time being, house hunters are feeling more secure about making major financial decisions.” He also commented that most buyers in the capital who were hoping to snap up a property at a big discount would be disappointed, saying: “Buyers are always looking for a bargain, but in reality, these are few and far between” It appears there are few companies like London Richmond who are able to secure big discounts on central London properties and this is why our company has performed so well over the last few years.