According to a closely watched report, the sharp decline in house prices took a temporary pause last month.
Nationwide has announced that house prices remained stable in September compared to the previous month, marking a significant change from the 0.8% fall reported in August. Nonetheless, prices are still 5.3% lower than a year earlier, equalling the most substantial annual drop since 2009.
This update from Nationwide corresponds with the end of the traditional summer holiday slowdown in the housing market. It marks the first assessment of conditions since the Bank of England's most recent interest rate decision. While the Bank could impose further rate increases to combat any lingering inflationary pressures in the economy, the market's expectations for such hikes have diminished, as evidenced by the declining fixed mortgage rates. Moneyfacts reported that the average five-year fixed mortgage rate had dropped below 6% for the first time in nearly three months.
The Bank's efforts to control inflation have been the leading cause of this year's decline in house prices. Borrowers have had to bear the additional monthly costs associated with the broader cost of living crisis, which has added to the economic strain. Landlords are also passing these supplementary expenses in the rental market, which is also influenced by a shortage of available properties.
If you want to learn more, contact our conveyancing team who can help discuss this further.
Information gathered from Sky News, see here.