Rolling coverage of the latest economic and financial news
Here’s some early reaction to this morning’s news that UK house fell, on an annual basis, in August for the first time since November 2023:
Jeremy Leaf, north London estate agent:
“We are seeing a bit of a stand-off between buyers who are nervous about making offers while worried about the effects of inflation on mortgage costs and sellers who believe they have reduced as much as they can.
“Therefore, prices overall in the fewer properties which are changing hands are not only softening but sales are taking longer.
“Buyers and sellers are taking a pragmatic approach and adjusting expectations. The resilience of the market, and determination of needs-based buyers and sellers who are proceeding with their transactions, remains evident.
Ongoing Middle East tensions have created further volatility among Swap rates in the past week, but so far this year, the Bank of England has held interest rates steady, creating a calming effect. Affordability concerns remain however, particularly if lenders increase their mortgage pricing in the short term and the Bank raises interest rates at next week’s meeting, but borrowers seem to be adapting to shifting market conditions remarkably well.
“With tensions in the Middle East simmering once more and the price of oil moving higher, Swap rates - which underpin mortgage pricing - jumped, before coming back down a little.
“Until we have a confirmed end to the conflict we expect this pattern of volatility to continue – borrowers need to be aware and take steps to secure rates well ahead of their current deals expiring.
The South East saw the largest decline, with prices down -1.6% year-on-year to £381,729.
In Greater London, where prices fell -1.5% to £534,177.
The South West and Eastern England both recorded annual declines of -1.2%.
Northern Ireland continues to record the strongest annual growth, with prices up +6.9% year-on-year.
Prices in Scotland rose by +3.5% over the past year.
In Wales, annual growth stands at +0.6%.
In the North East of England, prices rose by 2.7% on an annual basis.
In the North West, prices were 2% higher than a year ago.
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