UK Housing Market News – Price Falls for Fourth Consecutive Month

The UK housing market remains resilient, despite the latest Halifax house price index release, which records that the average house price experienced a 0.3% decline in July. This is the fourth consecutive month of decrease, while the yearly decrease in property price stands at 2.4%, which is a minor easing from the 2.6% figure that was reported in June. This adjustment has reduced the average cost of a UK home by approximately £9,000.

Even with these changes in price trends, the housing market is demonstrating resilience, indicated by industry data showcasing increased market activity.

The housing statistics are contributing to the growing perception that the housing market maintains a level of resilience, despite the challenging economic landscape. Interestingly the demand from first-time buyers continues to show relative stability. Some first-time buyers are contemplating the option of buying smaller homes to counterbalance the impact of increased borrowing costs.

In contrast, the buy-to-let sector is experiencing a degree of pressure, with interest rates exerting influence on the strategies of landlords. These considerations are in conjunction with discussions about forthcoming reforms within the rental sector.

The trajectory of the housing market is intrinsically linked with the broader performance of the economy. Several factors are lending support, particularly the substantial yearly wage growth of around 7%. Whilst a potential rise in unemployment could temper this growth, it is unlikely to escalate to levels that would induce a sharp deterioration in market conditions.

Anticipations of further increases in the interest rate of the Bank of England were moderated by an inflation report for June that turned out to be more favourable than expected. Despite recent indications of stabilisation or even a slight reduction in borrowing costs, it’s probable that these costs will remain notably high compared to the norms homeowners grew accustomed to over the last decade.

The ongoing pressure on affordability is set to maintain the situation of restrained market activity. Consequently, the forecast points towards a continued downward trend in house prices as we move into the upcoming year, although potentially not as sharp a decrease as was first anticipated.

If you are considering buying a home, it is important to speak to an independent mortgage advisor to get the best possible deal. We have been helping to get the best deals throughout Bedford, Milton Keynes and Northampton for many years. Contact us today to see how we can help you.

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King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register under reference number 803561.

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      Automatic Property Value Updates

      Changes in property value, coupled with a potential reduction in your loan amount (with a repayment mortgage), mean a change in the equity available in your property (Loan to Value); hence there could be improved opportunities for a better mortgage for you.

      Product Expiry Date

      Sussed will track when your mortgage is due to expire (usually when your mortgage payments rise substantially as you will automatically transfer to your lender’s standard rate).

      The app will alert you when it’s the right time to discuss your options with your mortgage broker.

      Sussed can help you plan.

      Rate Riser

      This feature is ideal for today’s economy and increasing prices. Sussed will continually scan the market, looking for the best-fixed rates available, especially when interest rates are rising.

      Using a series of algorithms, our clever technology can identify longer-term fixed rates available today that could save money against predicted rates at the end of your current product term (including the cost of transfer) – sussed is doing all the hard work.

      Equity Available

      With automatic property value updates and your Mortgage information loaded, this feature calculates the amount of equity and the maximum potential loan that may be available within a landlord’s portfolio. This will assist with seeing if there is the opportunity for to perhaps buy another property from leveraging your portfolio.

      Within sussed, you will also be able to see each of your properties with a roadside picture, a confirmed property value, monthly rental, current mortgage balance, payments, interest rate and the Loan to value/Gross rental yield.

      Sussed can help you manage your portfolio.

      Early Review

      This feature is there waiting for interest rates when they reduce. Using the same technology as Rate Riser, sussed will identify if your current deal is now able to be improved.

      Should the interest rates decrease, sussed will compare deals available on the day with your existing deal and flag if there is an opportunity for you to save money by switching.

      Regional Price Limits

      There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

      • East - £407,400
      • East Midlands - £261,900
      • London - £600,000
      • North East - £186,100
      • North West - £224,400
      • South East - £437,000
      • South West - £349,000
      • West Midlands - £255,600
      • Yorkshire and the Humber - £228,100

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