September brought a more cautious backdrop for both the economy and property market. Inflation continued to rise, reaching 3.1% in August, while the Bank of England held interest rates at 3.75% and warned that persistent energy price pressures could result in further rate increases. Consumer confidence improved for a third consecutive month, although higher costs and borrowing rates continue to weigh on spending and wider economic activity.
In the housing market, signs of stabilisation are emerging. Buyer demand and agreed sales remain subdued but have shown gradual improvement, while affordability has benefited from house price growth remaining below earnings growth. Higher mortgage rates continue to impact sales activity, although buyer searches are increasing and industry experts suggest pent-up demand could support the market once borrowing costs ease. Rental demand also remains strong, with expectations for further rent rises in the months ahead.
For a fuller look at the latest economic developments, market movements and property trends, please click the links below to read the complete Economic Review and Residential Property Review.