While house price growth is still tame and salaries are improving, rising interest rates should eventually ease the stress that comes with them, according to Amanda Bryden, Halifax’s head of mortgages.
The average UK property price fell by 0.2% in June but remained essentially stable overall, according to the lender’s most recent estimates.
According to Halifax, the average price of a home in the UK was £288,455 last month, slightly less than £288,931 in May.
Prices increased 1.6% over the previous year, in line with recent data from the Nationwide Building Society.
The market, according to Ms. Bryden, was “delicately balanced” and susceptible to changes in the Bank of England’s base rate occurring swiftly.
In an effort to combat skyrocketing inflation, the UK’s central bank started raising its benchmark interest rate in late 2021. Prices increased as supply chain constraints resulted from the relaxation of pandemic-related limitations, and after Russia invaded Ukraine, the cost of food and energy surged.
At 5.25%, the bank’s base rate is at its highest point in sixteen years.
Nonetheless, the bank seemed to imply that it might lower rates at its upcoming meeting on August 1st during its most recent rate-setting session.
