Keller Williams UK
House Price Growth Nears Zero

House Price Growth Nears Zero

House Price Growth Nearing Zero


Welcome back to EO Estate Agent’s market update, based on data from August 2023.

Six months ago, in March 2023, house price growth was sitting at 5.3%, which was low compared to elevated 2022 figures but in a continuous decline. Now, they sit at 0.1% compared to 5-year averages across the UK. In London, this number falls into the negative: -1%.

This drastic change in house price growth is brought about by the consistent increases in the Bank of England’s base rate over the last few months. It currently sits at 5.25% but is expected to increase once more and then peak. Rates are only expected to come down in 2024-2025. Even then, mortgage rates are unlikely to dip below 4% in the immediate future.

Dip In Mortgage Purchases



Mortgage purchases make up the large majority of sales in any given year. They are currently 28% lower than they were last year and there is a 21% decline in completions in 2023 compared to 2022.

Overall stock is up 16%, while demand is down 34%. The difference between these two figures means we have transitioned into a buyer’s market, and this is driving the stagnating house price growth.

House price growth and completions are the lowest they have been since 2012.

Renting Cheaper Than Buying


Renting, on average, is 10% cheaper than mortgage repayments, after many years of the opposite being true.

However, motivated vendors who are willing to be flexible on their asking price will still be able to find their buyers. Especially as increasing wages boost affordability, with the average UK home down to 6.3 times the average annual earnings.

We will be back with another market update soon. Until then, we wish you all the best.

Kind regards,

Luiz De Souza | EO Estate Agents


Rental Reform Key Features

Rental Reform Key Features

Rental Reform


Good afternoon, 

We are getting in touch to update you on the Renter’s Reform Bill, which is set to enforce major changes in the rental market.  

Through these changes, the current government plans to readjust the power balance between landlords and their tenants. 

The bill, in its current form, includes four major changes (among a host of other smaller adjustments). 

No-fault Evictions Banned 


As it stands currently, Section 21 allows landlords to repossess their homes from tenants in Assured Shorthold Tenancies in cases where their fixed term has ended, or no fixed term is in place. 

These are commonly called ‘no-fault evictions.’ The threat of no-fault evictions is believed to dissuade tenants from challenging landlords when they are living in poor conditions. 

The Renter’s Reform Bill will ban these types of eviction. 

Easier Repossession – Disruptive Tenants 


To cover for the banning of Section 21, the bill also introduces changes to what ‘disruptive’ or ‘anti-social’ behaviour can legally warrant an eviction. 

Notice periods for irresponsible tenants (missing rent payments/ causing damage) will be shortened. The list of disruptive behaviours which can lead to repossession will be broadened. 

New grounds for repossession will be brought in for landlords who seek to repossess for their own use of the property (or a family member’s). 




Landlords will now be expected to consider all requests for pets and the tenant may challenge their decisions if they believe they are unreasonable. 

Following this, tenants may be expected to set up insurance to cover potential damage to the property. 


Ombudsman for Disputes 


For smaller disputes, to avoid the need for a court, the government will set up an ombudsman to independently investigate. 

It is believed this will lead to faster resolutions. The ombudsman will have the authority to demand up to £25,000 in compensation from landlords who are found to have acted improperly. 

These are the key changes for now, but we will keep you updated as the bill is debated in Parliament. Because of the nature of such reforms, we are not expecting to see any changes enacted until 2024. 


Kind regards, 

EO Estate Agents

Dip in Demand Brings Modest Discounts

Dip in Demand Brings Modest Discounts

House Price Growth Steadily Falls

Welcome back to EO Estate Agents’ market update!

Data from February helps bring to focus the trajectory that the market looked to be taking at the beginning of 2023.

As was expected, house price growth has continued its decline. It is now at a 5.3% growth compared to 5-year averages, down from 6.5% last month and 8.6% last year. Discounts in this market are commonplace. The average discount to the asking prices in February was £14,000. This is roughly one-third of the average gains a homeowner would have experienced during the pandemic inflation of house prices.

The most optimistic way to interpret this is, by selling now, vendors are cementing those gains. If the intention is to upscale to another property, then it is likely that the other property has experienced discounts too. In this way, for vendors, a 4.5% average discount to asking price is not as challenging a prospect as it may first appear.

For buyers who are worried over increase mortgage rates, the discounts and increased stock on the market, are strong motivators to proceed with a purchase.


Marginally Better Than Normal

Market conditions are solidly in line with pre-pandemic levels of 2017 to 2019. Demand is up 8% compared to pre-pandemic levels and the number of sales agreed is up 1%. With 2017-2019 being considered more indicative of ‘normal’ market conditions, it means the current market is marginally stronger than what is considered ordinary for the UK property market.

A year-on-year comparison is far less flattering but the pandemic-driven drive for more space was never forecasted to bring about permanent changes to the market. Especially considering the end of the stamp duty holiday and Help to Buy.

Realistic Sellers


With these seasonal and artificial boosters to the market health gone, the market now requires a healthy dose of realism in regard to negotiating asking prices.

And sellers, with solid reasons to move, have proven able to meet this burden. Zoopla says:

‘It is welcome to see evidence of greater realism from sellers on pricing to secure a sale.’


Kind regards,

Luiz De Souza


A New Year – A Return To Normal?

A New Year – A Return To Normal?

Ripple Effects From 2022


Welcome back to EO’s monthly market reports. 2022 was a turbulent year for the economy which had a significant impact on buyer demand and overall affordability in the property market. Data from January can now be used to evaluate how these on-running factors are set to impact Q1 of 2023.

The house price growth average across the UK currently sits at +6.5%. This is a significant reduction from the +8.3% it was in January 2022; however, it is nowhere near the +3% region it was forecasted by the end of 2022. The market, and buyer demand, especially have been far more resilient than anticipated, even when faced with a budget crisis.


However, the market is changing in response to the cost-of-living crisis. There has been a rebalancing of demand, whereas 1 or 2-bed flats have seen an increase in buyer demand, with 27% of new buyers now looking for these types of properties, 3-bed houses (while still the most popular) have fallen from 44% to 39% in demand.


Back To a Pre-Pandemic Market

Demand overall is down 23% compared to a five-year average. But the pandemic years are exceptional circumstances and 2017 to 2019 levels are more indicative of normal market conditions. This -23% demand is in line with the -28% average for 2017-2019, so Q1 2023 seems to be a return to normal.

The number of sales agreed, and the flow of new supply is also in line with pre-pandemic levels. Stock however is significantly different, with pre-pandemic markets having been at an average of +2% in stock levels while we are currently at -6%. This of course can be explained by the sustained and extraordinary buyer demand during the pandemic, which diminished stock on the market.
Stock levels are now seeing a resurgence though, with the average of available homes per estate agent resting at 23, up from 14 in early 2022.

It’s All About Balance


These market conditions are a result of changes in affordability. The increase in stock and the price sensitivity of buyers means it is expected that we will continue to see modest price reductions in Q1 of 2023 but buyers expecting drastic price decreases will not find them and will likely choose to capitalize on steadily lowering mortgage rates as the year progresses.

Zoopla says:

‘Anyone serious about selling in 2023 needs to make sure their home is competitively priced and in line with what buyers are prepared to spend in the local market.’

In short, the pandemic-driven property boom seems to be over, and the market has returned to having a more balanced relationship between buyers and sellers.


Kind regards,

Luiz De Souza


Forecast For The New year

Forecast For The New year

Current Outlook


Welcome back to the final house market report of 2022. This year has been fraught with many changes and challenges, and the economic headwinds that were predicted at this time last year have certainly made their effects felt. However, the house price growth decline that was predicted in response to these economic challenges is not as pronounced as expected.

House price growth currently sits at 7.8%. This was predicted to fall to 3% growth by this time of the year. The gulf between what was predicted and the actual market movements have been attributed to enduring buyer demand. This demand is said to be strongly linked to pandemic-related reassessments, such as the desire for more space.

House Price Growth Going Forward

House price growth has now begun to quickly decline, however. And in comparison to the same time last year, sales volumes are down -28%.

Demand is also in decline, with a dip of -44% since the mini-budget.

These conditions are starting to affect the decision-making of vendors, with 25% of homes experiencing any level of price reduction. Over one in ten homes for sale, have recorded a reduction of over 5%.

Compared to 5-year averages, however, though house price growth is slowing, there are yet to be signs of house prices falling this quarter.

What About 2023?


Throughout 2023, UK house price growth will be heading towards 0% (compared to five-year averages).

Some have proposed that the average house price growth could move into negative territory, but considering how much growth has defied expectations this year – despite significant economic headwinds – I believe this is unlikely.

Still, house price falls of up to 5% are expected over the course of 2023.

Once there is enough data for 2023 to re-evaluate the state of the market, we will be back with another market report. Until then, we here at EO are wishing you a fantastic Holiday break.


Kind regards,

Luiz De Souza


The Periodical – Part 1

The Periodical – Part 1

Wattle and Daub: The Tudor Style


It can be overlooked, with a viewpoint too laser-focused on percentage increases and smart investments, that our homes can be a reflection of ourselves. That is not to say that realistic and strategic consideration of the housing market, as seen here, is not worthwhile. Quite the opposite. It can and has been a booster of prosperity for many. But the value of reading into the character between the brick and mortar cannot be overstated. And so, to investigate how homes can prove a marker for cultural outlook, or changing day-to-day considerations, I will be periodically providing retrospective accounts of changing house styles throughout the decades. Starting today with the perhaps-not-so-terrifying-Tudors.

                Said to be the oldest surviving style of houses in England that exist in large enough numbers to warrant categorisation, Tudor homes are iconic Olde England. Instantly recognisable for their contrasting black and white woodwork, it is interesting to consider what that striking exterior represented internally. To begin with, the material (daub) that was filled in between the timber frames was not naturally that colour. The daub was painted white with limewash after being filled in between the wooden strips and sticks that held it in place. Its original appearance was more earthen, being made from clay and sand, and of course, animal dung. The ingenuity in using readily available materials, being measured against the added effort of increasing its aesthetic appeal, suggests a growing compromise between what was practical and what was socially attractive.

                This brings us to windows. Tudor-style houses have small-paned casement windows. They are often tall and narrow. These textures help add to the character of the houses, but they were born out of practical considerations too. Glass in the period, the 1480s – 1603, was still expensive to produce. The panes helped limit its use but having windows at all, therefore, signified wealth. They were such an investment that homeowners commonly took their windows with them when they moved. How extravagant the skyscrapers of today, behemoths of glassware such as they are, might appear to a Tudor time-traveler. And how strange it is to conceptualize windows, which appear as static and fundamental aspects of any given house, as movable objects in the vein of any other furniture.

                If you happened to peek into a Tudor window in their heyday, however, you would have found dirt floors sparsely covered in rush. Rush was threads of twine sewn together into covering, but reputedly inefficient at holding back the spread of dirt. Because of this, while carpets existed, they were often found hung on the walls. Stripped of their function, I would venture to say their purpose was, then, as yet another marker of wealth. Their chimneys too meant more than just their intended use. They were a relatively modern technology and allowed for more rooms that served different functions by lessening the importance of a single, central source of warmth. And so, to a Tudor, chimneys might have been their modern equivalent, status-wise, of heated flooring or voice-controlled appliances.

                Due to their visual appeal, there have been attempts to revive the Tudor style. Principally, in Roaring 20s America, it was brought back with modern techniques: stone walls with faux timber. Slate roofs instead of thatch. But the Great Depression brought an end to that trend because its laborious and expensive construction made it cost-prohibitive. And so, just as England had abandoned the style for being laborious and time-consuming, America abandoned its revival. Still, despite cost and impracticalities, I am glad Tudor originals and Revivals are still around. If not to live in, but to admire from afar.


Luiz De Souza | Administrator