August Sees Steepest 14-Year Decline in Housing Prices
Fresh data from the Halifax House Price Index reveals a substantial 4.6% annual decline in average property prices as of August, marking the most significant drop in 14 years. This plummet comes alongside a growing challenge of unaffordable mortgage rates for prospective buyers.
In response to these developments, David Hannah, Group Chairman of Cornerstone Tax, a prominent UK property tax consultancy, delves into the persistent house price decline and offers insights into his market outlook.
August saw a consecutive fifth monthly drop, with prices declining by 1.9%. The typical home now commands a value of £279,569, a notable decrease from the previous month’s £285,044 and approximately £14,000 less than a year ago.
Hannah underscores the adverse impact of the Bank of England’s consistent interest rate hikes on consumer spending power. This, coupled with elevated interest rates for five-year mortgages, currently averaging 6.19%, compared to December 2021’s 2.64%, has significantly constrained Britons’ purchasing capacity.
Despite these dampening factors, Hannah emphasizes that there are silver linings in the market, particularly evident in the continued activity of cash buyers capitalizing on the declining house prices.
This backdrop coincides with the Bank of England’s assertion that the UK has likely reached the peak of interest rates, a development Hannah anticipates will lead to a robust market response upon positive news regarding borrowing costs.
Seize the moment in this opportune backdrop! As the Bank of England suggests that interest rates have likely peaked, Hannah foresees a thriving market response when favorable news on borrowing costs emerges. Don’t miss out on this window of opportunity – choose GD Property Solicitors conveyancing service to navigate this changing landscape and secure your financial future today. Act now to make the most of these advantageous conditions!”