By Peter McLaren-Kennedy • 05 August 2022 • 10:25
Houses for sale - Image Rick Deacon Shutterstock.com
The latest house price report issued by the Halifax on Friday, August 5 says that the market is likely to continue to weaken as interest rates rise and inflation bites.
Released after the Bank of England raised interest by half a per cent, the report said prices, had edged down from their recent high by 0.1 per cent from June. However, annually prices rose 11.8 per cent.
The unexpected boom in the price of houses followed the pandemic and a switch to home working, with prices buoyed by a stamp duty amnesty and low borrowing costs.
Russell Galley, Halifax Managing Director warned: “House prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold.
“Therefore a slowing of annual house price inflation still seems the most likely scenario.”
Bank of England data showed the lowest number of mortgage approvals for two years, whilst rival lender Nationwide said prices had risen at the slowest rate in more than a year.
With inflation expected to reach as high as 13 per cent this year, the Bank of England raised interest rates to the highest level since 2008 in what will be a painful move for many householders struggling to make ends meet.
UK house prices are expected to continue to fall with the Bank of England warning of recession and further interest rate hikes.
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Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news.
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