Home costs slip additional in July, however ‘degree of resilience’ stays, Halifax says
The common value is down 0.3% month-on-month and down 2.4% year-on-year. But the year-on-year decline was slower than the two.6% dip in June.
In London, costs had been down 3.5% year-on-year.
Kim Kinnaird, director of Halifax Mortgages, famous that almost all of the decline got here within the wake of the mini-Budget final yr, anbd prices over the past six months had been roughly regular.
“In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February,” Kinnaird stated. “The pace of annual decline also slowed to -2.4% in July, versus -2.6% in June. These figures add to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds.
“In particular, we’re seeing activity amongst first-time buyers hold up relatively well, with indications some are now searching for smaller homes, to offset higher borrowing costs. Conversely the buy-to-let sector appears to be under some pressure, though elevated interest rates are just one factor impacting landlords’ business models, together with considerations of future rental market reforms. It remains to be seen how many may choose to exit and what that could mean for the supply of properties available to buy.”
That comes regardless of 14 consecutive rate of interest hikes from the Bank of England, which raised its rates of interest to five.25% final week.