House costs are rising at their quickest annual fee for almost two years in response to newest figures from Britain’s largest mortgage lender.
Halifax mentioned the common value of a house within the UK went up 4.3% in August to £292,505, the best degree since August 2022, the month instantly earlier than Liz Truss’s infamous mini-Budget.
Prices haven’t been rising quicker yr on yr since November 2022, the lender mentioned, though it additionally cautioned that this partly mirrored the weak spot out there within the chaotic aftermath of the mini-Budget. In London they have been simply 1.5% greater than a yr beforehand.
On a month-to-month foundation costs rose simply 0.3% in August, down from 0.9% in July.
Amanda Bryden, head of mortgages, Halifax, mentioned: “Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.
“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.
“However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”
Buying exercise within the property market has been stimulated in current month by falls in mortgage charges with many mainstream lenders now providing 5 yr fixes priced at under 4%.
Jonathan Hopper, CEO of Garrington Property Finders, mentioned: “Thestarting gun has been fired on the Autumn bounce – but this September buyers have extra ammunition thanks to more affordable mortgages.
“With interest rates falling across the board and some lenders now offering rates not seen since the Liz Truss era, thousands of buyers who had been sitting on the fence have sprung into action – with many setting themselves the goal of being‘in by Christmas’.”
Mark Harris, chief government of mortgage dealer SPF Private Clients, mentioned: “As mortgage rates have fallen, we have seen activity noticeably increase. Estate agents report that August was busy as motivated movers who may have delayed for a while have got on with their transactions, while we have seen people take advantage of more palatable rates.”
Jeremy Leaf, north London property agent and a former RICS residential chairman, says: “The market breathed a collective sigh of relief when first the election result ended lingering political uncertainty and again when interest rates started to fall.
“That added comfort is reflected in this solid, not spectacular, price growth figures from the country’s largest lender and reinforced by recent encouraging mortgage approval numbers.
“These show buyers and sellers did not panic but continued about their business over the summer. However, mortgages are still relatively expensive for many and talk of ‘a painful Budget’ by next Halloween is spooking many into holding off a little longer or at least negotiating harder to avoid what they regard as overpaying.”
