Home costs nonetheless rising in every single place besides London, official statistics reveal
The tempo of growth dipped barely and was properly under inflation, in response to Land Registry information, however the common house price was nonetheless up by 1.7% in nominal phrases.
The housing market has proved surprisingly resilient within the face of rising rates of interest, which have soared to five.25% because the Bank of England goals to push down demand to convey inflation again below management.
The rise in charges despatched mortgage prices skyrocketing, although they’ve dipped barely in latest weeks. According to Moneyfacts, the typical two-year fastened residential mortgage charge at this time is priced at 6.77 per cent, down from 6.79 per cent yesterday and from the height of 6.86 per cent. The common five-year repair declined to six.26 per cent.
In London, nonetheless, costs have been down by 0.6% to £528,000, although this was nonetheless rather more costly than some other area with the South East second at £391,000. The common UK home value was £288,000.
Emma Cox, MD of actual property at Shawbrook, stated: “A modest increase in house prices sees the market yet again defying expectations in the face of fluctuating rates, and a slowdown in activity.
“”With the property market overall less busy, a reduction in competition from owner occupiers will create a favourable environment for landlords to consider expanding portfolios. With a robust demand in the rental market, landlords might consider diversifying into higher-yield options like Houses in Multiple Occupation (HMOs), which could in turn contribute to an increase in available properties for rent.”
The land registry stats contradict information from main mortgage lenders Halifax and Nationwide, which reported declines, albeit modest ones, in latest months.
Jonathan Hopper, CEO of Garrington Property Finders, added: “It’s increasingly clear that the property market is going through a correction rather than a crunch.
“While the slowdown in transactions and widespread falls in prices are undeniable, they’re not universal. The average price paid for a home in England rose by 1.9% in the 12 months to June, up from the 1.7% increase seen in the year to May.
“And across the UK, seasonally adjusted prices rose by 0.3% in June, cancelling out the 0.3% fall recorded in May.”