UK house prices fell at their sharpest annual pace since 2009 after soaring mortgage rates curtailed how much buyers could afford, Halifax, one of the nation’s biggest mortgage lenders said today.
Halifax said the average value of a home fell 1.9% in August alone to £279,569, the sharpest monthly pace since November. It left prices 4.6% lower than a year ago when the value of UK property peaked.
The Bank of England has raised interest rates 14 times since late 2021 tame inflation, and that’s straining the finances of consumers already hit with higher food and energy bills.
As a result, the market is slowing, with year on year property transactions down 21.7%, mortgage approvals also down 21.7% and new buyer enquiries down 45%.
“We do expect further downward pressure on property prices through to the end of this year and into next, in line with previous forecasts,” Kim Kinnaird, director at Halifax Mortgages.
UK house prices fell at their sharpest annual pace since 2009 after soaring mortgage rates curtailed how much buyers could afford, Halifax, one of the nation’s biggest mortgage lenders said today.
Halifax said the average value of a home fell 1.9% in August alone to £279,569, the sharpest monthly pace since November. It left prices 4.6% lower than a year ago when the value of UK property peaked.
The Bank of England has raised interest rates 14 times since late 2021 tame inflation, and that’s straining the finances of consumers already hit with higher food and energy bills.
As a result, the market is slowing, with year on year property transactions down 21.7%, mortgage approvals also down 21.7% and new buyer enquiries down 45%.
“We do expect further downward pressure on property prices through to the end of this year and into next, in line with previous forecasts,” Kim Kinnaird, director at Halifax Mortgages.
http://www.martinnorth.com/
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UK households are facing an avalanche of cost pressures triggered by rising interest rates and the worst cost-of-living crisis in a generation. Key mortgage rates soared above 6% again this summer, and homebuilders including Ballymore Properties and Vistry Group Plc have already said they’re planning to cut staff numbers.
No surprise then that Britain’s property market showed signs of slowing to a crawl after a jump in mortgage costs reduced both buyer demand and the volume of sales. The figures add to evidence that the housing market is weakening after the quickest series of increases in interest rates lifted the cost of mortgages. Lenders including Nationwide and Halifax say property prices are falling, and some expect a peak-to-trough slump of 10% to 12% is “very likely.”
The Royal Institution of Chartered Surveyors (RICS) UK Residential Survey for July 2023 says at the national level, new buyer enquiries posted a figure of -45%, like last month’s figure of -46%. As a result, this metric continues to signal a sharp downturn in buyer demand following the latest escalation in mortgage interest rates. When viewed at the level of the English regions and the four nations, all parts of the UK display a firmly negative return for new buyer enquiries over the month.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
UK households are facing an avalanche of cost pressures triggered by rising interest rates and the worst cost-of-living crisis in a generation. Key mortgage rates soared above 6% again this summer, and homebuilders including Ballymore Properties and Vistry Group Plc have already said they’re planning to cut staff numbers.
No surprise then that Britain’s property market showed signs of slowing to a crawl after a jump in mortgage costs reduced both buyer demand and the volume of sales. The figures add to evidence that the housing market is weakening after the quickest series of increases in interest rates lifted the cost of mortgages. Lenders including Nationwide and Halifax say property prices are falling, and some expect a peak-to-trough slump of 10% to 12% is “very likely.”
The Royal Institution of Chartered Surveyors (RICS) UK Residential Survey for July 2023 says at the national level, new buyer enquiries posted a figure of -45%, like last month’s figure of -46%. As a result, this metric continues to signal a sharp downturn in buyer demand following the latest escalation in mortgage interest rates. When viewed at the level of the English regions and the four nations, all parts of the UK display a firmly negative return for new buyer enquiries over the month.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Latest date from the UK shows property prices falling as mortgage rates rise, and lending slows. In addition, migration, which reached a peak, may fall ahead.
Some interesting parallels with Australia?
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Property hi-jacking is on the rise. We look at the issue and what precautions people may be able to take. And will digital transfers make it more common?
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Property expert Joe Wilkes and I discuss the UK property market and highlight some of the drivers which explain why prices in many markets are under pressure. Will Boris get the blame?
NB. This post was was filmed last Monday 29th July, since which the ONS have published negative figures for Q2 UK GDP.
Property expert Joe Wilkes and I discuss the UK property market and highlight some of the drivers which explain why prices in many markets are under pressure. Will Boris get the blame?
NB. This post was was filmed last Monday 29th July, since which the ONS have published negative figures for Q2 UK GDP.
In our latest video show I caught up with Joseph Wilks who was on the front line of the UK property market in 2008 and beyond.
He describes what happened (and the parallels with Australia) and also explores some of the dynamics of the New Zealand property market which seems to have some of the same hallmarks.
