UK house price growth halves amid rising mortgage interest rates
Summary
House price growth in the UK slowed significantly in September, with average prices rising only 0.8% over the year compared to 1.6% in August. Higher mortgage interest rates, influenced by economic uncertainty and rising energy costs due to conflict in the Middle East, have made buying homes more expensive and caused the housing market to cool.Key Facts
- UK house price growth halved from 1.6% in August to 0.8% in September.
- The average UK home price in September was £274,251.
- House prices fell 0.2% from August to September after adjusting for seasonal changes.
- Rising energy costs driven by the Middle East conflict have increased inflation worries.
- These inflation concerns have led to higher mortgage interest rates, now above 5.9% for two- and five-year fixed mortgages.
- East Anglia saw a 0.7% annual drop in house prices, while Northern Ireland had the highest growth at 5.9%.
- Despite higher mortgage rates, slower house price growth has slightly improved affordability for some buyers.
- Experts say the housing market may improve if energy prices and interest rates ease in the future.
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