Average UK house price falls as ‘market catches its breath’
Nationwide Building Society reported that UK housing prices decreased by 0.1% monthly in August. This slight decrease follows a 0.5% increase in July. Annual growth fell from 2.4% to 2.1% in August. The average house price is now 271,079 £.
Nationwide’s chief economist Robert Gardner said: “Given that the appropriate health is stretched according to long -term norms, the relatively suppressed speed of home price growth can be understood.
“Home prices are still high compared to household income, which makes it difficult to create a deposit for potential buyers, especially in recent years, considering the intense cost of living costs.”
“With the fact that the levels that have ruled after the pandema of mortgage costs are more than three times, this means that the cost of serving a mortgage is an obstacle for many.
“Indeed, with a 20% deposit, the average winner of the receiving property for the first time with a 20% deposit is over 30% of the host salaries equivalent to about 35% of their salaries.
“However, if the income increase continues to leave the price growth behind, as we expected, the affordable price should continue to heal gradually.
“If the bank ratio is reduced again in the coming quarters, the borrowing costs are likely to be slightly more moderate.
“This should support the buyer demand, especially since the household balance sheets are strong and the labor market conditions are expected to remain intact.”
Alice House, the personal finance analyst of Bestınvest’s Partners’ Partners, said: “The sellers are pricing more realistically to secure agreements at a time when buyers hold their upper hand.
“The sellers, who were initially listed at inflated prices, are increasingly adjusting their prices to remain competitive.”
Nathan Emerson, General Manager of Body ProperyMark of Property Professionals, said, ık We have witnessed a decrease in the number of decline, which is an increasing tendency to the number of completed property transactions.
“However, there are difficulties such as increasing the supply of new sustainable houses, providing assistance to buyers and lenders for the first time and ensuring that the latest decline in interest rates becomes more affordable mortgage products.”
Mark Harris, General Manager of Mortgage Broker SPF special customers, said that some mortgage loans were “upward priced ,, and others reduce the proportions of others:“ Mixed painting depends on the swap rates that support the pricing of fixed -rate mortgages and lenders that do not want to offer the best rates in the summer months when the holidays and resources are limited.
“Although mortgage rates will always jump, we do not expect a significant discount or increase in the short term.”
“Last month, buyers used the holidays to review their financial situations, improve search criteria, and view the houses they were listed before, Mat London -based real estate agent Chestertons sales chairman said.
Jonathan Handford, General Manager of Real Estate Fine & Country, said: “A 0.1% marginal decrease in housing prices shows that the market captures its breath instead of changing direction.”
Tom Bill, President of the UK Housing Research in Knight Frank, said, “As buyers and sellers deal with the uncertainty before the budget for the second year in a row, both sales and prices are lower risks.” He said.
Karen Noye, a mortgage expert in Wealth Manager Quilter, said: “While the economic ground remains challenging, today’s figures show that the housing market is still managed to strengthen for now.
“Continuous acceleration will depend on future interest rate decisions and approaching or blocking the market activity of approaching policy decisions.”
Iain McKenzie, Chairman of the Guild of Property Experts, said: uz We anticipate that home price growth will remain moderate for the rest of the year.
“Increased housing stock levels encourage more competition among sellers and strengthen buyers with more negotiations. Therefore, the correct pricing of a property will be very important in this price sensitive environment.”
