News

UK house prices increase by 2.2%

The price of houses in the UK continues to increase. In the 12 months leading up to July, the price of houses increased by 2.2%.

The average house price has grown by £6,000 in the previous 12 months, up to £290,000. The increase in average house prices vary in different parts of the UK, England has seen a 1.6% increase, 2.0% in Wales, 6.0% in Scotland, and 6.4% in Northern Ireland.

In England, the North East experienced the highest increase in house prices, where they saw a 3.8% rise over the 12 months leading up to July. However, the price in London saw a 0.4% decrease.

Despite this increase since last July, The Office for National Statistics said the annual growth rate was down from a 2.7% increase the previous year.

The head of mortgages at Atom Bank, Richard Harrison, commented: “There is clear momentum building in the housing market currently. The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold. For example, Rightmove has suggested that the number of interested buyers contacting estate agents is up by 19% compared with a year ago.

“Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers. Moneyfacts data shows that average interest rates for two- and five-year fixed rates have fallen for two straight months, a trend that borrowers will hope to see continue.”

As house prices continue to rise, financing a new property is becoming increasingly challenging. Consequently, more people may need to borrow funds to cover the costs of purchasing a home. It is essential for brokers to recognise this growing demand from clients and offer their services as support.