Property Market Update – What Happened in the UK Property Market in October 2022

October 31st, 2022

What Happened in the UK Property Market – October 2022

Mortgage rates, house prices and average rents have hit new highs, while
stamp duty has been cut in the government’s mini budget (one of the few
changes to remain after Kwasi Karteng’s sacking and the appointment of
Jeremy Hunt as the new chancellor), and a property with a place in TV history
is on the market!

Read on for all this and more in your October property market update.

Mortgage rates hit new 14-year highs

New figures have revealed that fixed-rate mortgages are at their highest levels
for 14 years, with hundreds of thousands of homeowners facing a steep
increase in monthly repayments when their current fixed rates finish in the
coming months.

Average fixed rates for two and five-year mortgages are currently at 6.65% and
6.51% respectively, with interest rates expected to rise again in November to
try and curb inflation, which is currently at 10.1%.

The sharp increase in rates is partly due to the government’s mini-budget
announcement in September, which sent the financial markets into a frenzy,
but with most of those policies having since been reversed and with a new
government set to be in place by the end of October, there’s some hope for
mortgage holders that rates may drop again.

House prices hit new high again

Despite rising interest rates, inflation and cost of living increases, average
asking prices have risen to a record high in the UK.

Figures released by property website, Rightmove, have revealed that the
average asking price in October was £371,158, a small increase on the previous
month.

While the increase might be a surprise to some given the current economic
climate, demand for property continues to outweigh supply, giving sellers
confidence they can achieve their full asking price.

Asking prices are predicted to drop slightly in November and December, in line
with seasonal demand, however, predicting prices for the new year and
beyond is impossible for forecasters due to the current political and economic
uncertainty in the UK.

Stamp duty cuts are here to stay…for now!

In welcome news for homebuyers, and particularly first-time buyers, the
government’s recent changes in stamp duty have been confirmed by the new
Chancellor.

As part of the government’s mini budget on 23rd September, then-Chancellor
Kwasi Kwarteng announced a raft of tax cuts, many of which have since been
reversed by his replacement, Jeremy Hunt.

However, the change in stamp duty was one of the only cuts to be kept in
place. The change means that stamp duty tax isn’t payable on properties over
£250,000 – an increase on the previous threshold of £125,000. For first-time
buyers, the threshold for paying stamp duty is £425,000.

The changes mean that movers will save up to £2,500, while for first-time
buyers the savings can be as much as £11,250.

Since the new Chancellor’s announcement that stamp duty changes would be
kept, Prime Minister Liz Truss has resigned, so there may be another shift in
policy when a new government is announced in the coming weeks.
Average London rents hit new highs

Rents in the capital have hit new highs, with the average property costing £553
per week. The previous high was set in June when prices hit £549 per week,
and data from various estate agents in the capital suggests that each property
has 29 renters competing for it on average.

This soaring demand has led to bidding wars, auctions, and even demands of
up to 12 months’ rent in advance from some landlords.

The increase in demand can be attributed to several factors, including a return
to city living post-COVID, and a rise in the number of renters delaying buying
plans as they wait for volatile mortgage rates to settle down.

Own a piece of British TV history

If you’re a TV sitcom fan and in the market for a new property, you might want
to take a look at the picturesque village of Turville in Buckinghamshire for your
next home.

That’s because a pretty two-bedroom cottage has gone up for sale, which was
used as the primary setting for The Vicar of Dibley.

The show, which starred Dawn French, was one of the most popular sitcoms in
the UK between 1994 and 2007, and the cottage featured prominently
throughout the show’s 20+ episodes.

Other scenes from the show were also filmed around the village, which has
also been used as a filming location for major shows like Goodnight Mr Tom,
Midsomer Murders, Killing Eve and Chitty Chitty Bang Bang.

The cottage has an asking price of £695,000, and you’ll find all the details on Rightmove.

For more property news and updates and a more detailed overview of the
Stoke-on-Trent, Newcastle-under-Lyme, Leek, Biddulph, Alsager and Nantwich area, get in touch with

Adrian Knapper Estate agent We are your local property
experts. Call us on 07419 21 28 27 or email adrian.knapper@exp.uk.com