Hundreds shaved off property costs as mortgage dealer predicts additional falls

UK home costs are £7,000 under the latest peak seen in September 2022, with annual home worth inflation working at 14.1 %.

UK home worth inflation in May this 12 months was working at about one-seventh of the degrees seen final summer season, in response to official figures.

The dip in inflation at present will spark hopes that the Bank of England will likely be much less inclined to hike charges additional and that there will likely be extra stability within the mortgage market because of this.

Aimee North, ONS head of housing market indices mentioned: “UK annual house price inflation slowed again in May for the seventh consecutive month.

“While the typical UK home worth stays greater than 12 months in the past, costs are actually £7,000 under the latest peak in September 2022.”

The common UK home worth in May 2023 was £286,000, which is £6,000 greater than 12 months earlier, however £7,000 under a latest peak seen in September 2022, the ONS confirmed.

Average home costs elevated over the 12 months to May 2023 to £304,000 in England (1.7 % annual progress), £213,000 in Wales (1.8 %), £193,000 in Scotland (3.2 %) and £172,000 in Northern Ireland (5 %).

Within England, the North East recorded the best annual proportion improve in home costs within the 12 months to May 2023 – 4 % -while the East had the bottom, with zero % progress.

Ms North continued: “UK rental prices increased again, with the highest annual inflation since records began in 2016.

“Nationally, Wales skilled the best annual inflation in June. In England, annual inflation was highest within the West Midlands and lowest within the North East.”

The ONS’s figures, covering the month of June 2023, showed private rental prices paid by tenants in the UK rose by 5.1 percent annually, up from 5.0 percent in the 12 months to May 2023.

It was the biggest annual percentage change since records started in January 2016.

Within England, the highest annual percentage change in private rental prices in the 12 months to June 2023 was in the West Midlands, at 5.4 percent, while the North East recorded the lowest, at 4.4 percent.

The figures were released on the same day it emerged inflation has eased by more than expected to its lowest level for 15 months.

Consumer Prices Index (CPI) inflation was 7.9 percent in June, down from 8.7 percent in May and its lowest rate since March 2022.

Nicky Stevenson, managing director at estate agent Fine and Country, said: “House costs continued to rise in May in comparison with a 12 months in the past, though mortgage fee rises are stifling progress because it eats into what patrons can afford.

“Today’s larger-than-expected fall in inflation will spark hopes that the Bank of England will be less inclined to hike rates further and that there will be more stability in the mortgage market as a result.”