UK house prices ‘relatively flat’ for third straight month before expected interest rate cut
House prices have remained “relatively flat” for the third consecutive month in June, down 0.2 per cent, according to new data from Halifax, with London remaining one of the most expensive markets in the UK.
According to the Halifax House Price Index, the average house price in the UK is £288,455, with London averaging nearly double at £536,306, up 0.9 per cent from last year.
“For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices, Amanda Bryden, head of mortgages, Halifax, said.
“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.”
However, while overall data on the market has been mixed so far this year, prices have been falling and the anticipation over the results of the General Election has caused signs of stagnation.
Now, with a new Labour government, some analysts remain “optimistic” that house prices will start to rise.
Within its 125-page manifesto, Keir Starmer said he would work with local authorities to give first-time buyers first dibs on homes and limit developments being sold off to international investors.
The party also promised to reform planning rules to build 1.5m more homes.
Nathan Emerson, chief executive at Propertymark, said: “The announcement of a general election last month may have caused movement in the housing market to slow down, but now that we know we have a new government with an overall working majority, Propertymark remains optimistic that house prices will start to rise during the summer months, which is a naturally busy time for the housing market.
“Beforehand, it would be good for the new UK Government to clarify what its housing policies are going to be quickly, and a rumoured interest rate cut from the Bank of England hopefully becoming a reality in August would help trigger a substantial amount of confidence in the housing sector yet again.”