Post by account_disabled on Mar 11, 2024 10:06:24 GMT
The housing market in the United Kingdom remains on a downward path , and prices in June fell by 2.6%, confirming their fastest annual rate of decline since June 2011. The average house price is at 285,932 pounds sterling, about 334,120 euros, due to the increase in mortgage interest rates that “hit the real estate market,” according to Halifax.
Kim Kinnaird, director of Halifax Mortgages , said that “the housing market remains sensitive to the volatility of borrowing costs.” In fact, it had been just 12 years since prices had seen such a pronounced decline. In fact, the previous most notable drop was 1.1% last May.
For his part, Martin Beck, chief economic advisor at EY Item Club , stated that "given the previous price escalation and the headwinds facing the housing market, with rising mortgage rates and other pressures financial markets, house prices continue to show a surprising degree of resilience.
The Bank of England increased the price of Czech Republic Mobile Number List money for the thirteenth consecutive time, up to 5%, its highest rate in 15 years. With persistent runaway inflation and rising wages, markets are pricing in UK interest rates to hit 6.5% by March 2024, pushing mortgage rates to their highest levels since The financial crisis.
Reducing affordability – the ability to finance – will inevitably act as a brake on demand in the UK housing market, experts say. Kinnaird highlighted that while there were no direct effects when rates rose, many mortgage holders with variable rate loans or mixed mortgages will face an increase in their payments in the coming years.
The Halifax report also highlights that existing home prices fell 3.5% year-on-year in June, their steepest drop since August 2009. The buying and selling of second-hand homes has been driving the market since the pandemic. In contrast, prices for new construction increased by 1.9% annually.
By region, house prices in the West Midlands, Yorkshire, Humberside and Northern Ireland stagnated or rose slightly, while all other regions recorded falls. The most pronounced was in the south of England (-3%), while in London prices fell 2.6%, a decrease that had not been seen since October 2009, which represents around 15,000 pounds less (about 17,530) compared to at last year's prices.
Adam Smith, founder of Northampton-based Alfa Mortgages , added: "The immense pressure being placed on people's finances will surely drive prices down over the coming months.
Kim Kinnaird, director of Halifax Mortgages , said that “the housing market remains sensitive to the volatility of borrowing costs.” In fact, it had been just 12 years since prices had seen such a pronounced decline. In fact, the previous most notable drop was 1.1% last May.
For his part, Martin Beck, chief economic advisor at EY Item Club , stated that "given the previous price escalation and the headwinds facing the housing market, with rising mortgage rates and other pressures financial markets, house prices continue to show a surprising degree of resilience.
The Bank of England increased the price of Czech Republic Mobile Number List money for the thirteenth consecutive time, up to 5%, its highest rate in 15 years. With persistent runaway inflation and rising wages, markets are pricing in UK interest rates to hit 6.5% by March 2024, pushing mortgage rates to their highest levels since The financial crisis.
Reducing affordability – the ability to finance – will inevitably act as a brake on demand in the UK housing market, experts say. Kinnaird highlighted that while there were no direct effects when rates rose, many mortgage holders with variable rate loans or mixed mortgages will face an increase in their payments in the coming years.
The Halifax report also highlights that existing home prices fell 3.5% year-on-year in June, their steepest drop since August 2009. The buying and selling of second-hand homes has been driving the market since the pandemic. In contrast, prices for new construction increased by 1.9% annually.
By region, house prices in the West Midlands, Yorkshire, Humberside and Northern Ireland stagnated or rose slightly, while all other regions recorded falls. The most pronounced was in the south of England (-3%), while in London prices fell 2.6%, a decrease that had not been seen since October 2009, which represents around 15,000 pounds less (about 17,530) compared to at last year's prices.
Adam Smith, founder of Northampton-based Alfa Mortgages , added: "The immense pressure being placed on people's finances will surely drive prices down over the coming months.