According to an indicator, the average home price rose by 0.4% month over month in August, bringing it to a new record high. This growth more than made up for the 0.1% decrease seen in July.
In August, home values increased by 11.5% on an annual basis across the entire UK.
The cost of a typical home has reached an all-time high of £294,260, according to Halifax; nonetheless, the bank’s study cautioned that “a more challenging era for house prices can be expected.”
According to Kim Kinnaird, director of Halifax Mortgages, the most recent monthly increase is “quite moderate” when compared with other recent increases. She added that “during the course of the last year, the rate of monthly house price inflation has averaged around 0.9%.”
“The median price of a home in the Unitehttps://twistok.com/read-blog/12480_bitso-and-ripio-announce-latin-american-crypto-cards.htmld States hit a new all-time high in August, continuing a trend that has seen it break previous records in seven of the first eight months of this year.
“However, the annual rate of growth decreased to 11.5%, from 11.8% in July, marking the lowest level in the past three months,”
“While housing prices have so far proven to be durable in the face of mounting economic uncertainty, recent industry surveys suggest towards cooling expectations across the majority of UK regions, as buyer demand eases,”
Because the ratio of the cost of housing to a household’s income is already at a record high, a more difficult era for the housing market should be anticipated.
Ms. Kinnaird continued by saying, “With house price-to-income affordability ratios already at historically high levels, a more difficult time for house prices might be predicted.”
“However, this should be regarded in the perspective of the unprecedented growth witnessed in recent years,” the author continues, “with average house prices having increased by more than £30,000 over the course of the last 12 months alone.”
According to Halifax, house prices in Wales as a whole climbed by 16.1% on an annual basis in August, representing the highest level of rise seen since the beginning of 2005.
This indicates that prices have increased by £31,246 over the course of the previous year, with the average home costing a total of £224,858 as of right now.
The South West of England continues to record a robust rate of annual increase, with home prices increasing by 14.5%, with an average property worth of £313,003 as of the end of 2017.
In Northern Ireland, the rate of yearly growth was 12.5%, and the average cost of a home was now £185,505.
A property in Scotland currently costs an average of £204,362, which is a record high price.
The annual increase in the average price of a home in London has been 8.8%, making this the most rapid price increase seen in the city in more than six years.
Over the course of the past year, London’s average house price has increased by £44,669, resulting in the median home now costing a record-breaking £554,718.
“With the London market now starting to shift through the gears, this will only bolster the might of the property market further and bring an even greater boost to house prices over the coming months,” said Marc von Grundherr, director of estate agency Benham and Reeves. “With the London market now starting to shift through the gears,”
In the following weeks, we anticipate an increase in the number of properties that are put up for sale.
According to Tom Bill, who is the head of residential research for Knight Frank in the United Kingdom, “the supply of houses tightened throughout the summer as more individuals took a summer holiday for the first time in three years, which kept prices buoyant.”
As we transition from a seller’s market to a buyer’s market, we anticipate an increase in the number of properties that are put up for sale in the coming weeks. After defying the laws of gravity for such a considerable amount of time, this factor, in conjunction with rising mortgage rates, will amplify the downward pressure on prices.
“Perhaps those who are suffering the most in this uncertain housing market are the renters,” said Alice Haine, a personal finance analyst at Bestinvest. “Many of them are not only facing greater household bills but also rent hikes as landlords attempt to pass on rising costs to their tenants.”
“If they are saving for a deposit to buy their own home, they may have to accept the fact that they may have to rent for a longer period of time than they had intended because other financial considerations take priority – specifically, more expensive electricity and food costs.”
It is almost probable that demand will begin to moderate in the coming months as a result of higher mortgage rates as well as the huge pressure on household finances.
“Higher mortgage rates and the huge pressure on household finances will almost surely start to moderate demand in the months ahead,” stated Andrew Montlake, managing director of mortgage broker Coreco.
Although rising energy costs are having an impact on affordability calculations, there continue to be good bargains to be had, thus according Mark Harris, chief executive of real estate broker SPF Private Clients. “Lenders are broadening their policy for higher income households accordingly,” Harris said. “There are still good deals to be had.”
“The forecast for the property market may rely on the stimulus measures that the incoming Prime Minister is now working to finalize,” said Nicky Stevenson, managing director of estate brokerage Fine & Country.
According to Halifax, the following is a list of the average house prices in August as well as the annual percentage increase:
- East Midlands, with a total of 244,378 pounds, a 12.0%
- The Eastern Region of England, 343,507, an 11.6% Increase
- London, £554,718, 8.8%
- The North East (£169,721), a 9.6% increase
- The North West, with £229,182 (a 13.7% increase)
— The Northern Ireland Assembly, 185,505 pounds, 12.5%
- Scotland ($204,362), 9.4% of the total.
- £400.528 in the South East (a 12.1% increase)
- £313,003 and 14.5% in the South West
- Wales, £224,858, 16.1%
- West Midlands, £253,871, 13.5%
— Yorkshire and the Humber, with a total of £207 636, a 12.2% increase