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Rate hikes put a brake on UK’s blazing hot property market, with experts predicting prices to turn ‘flatline’
- The Southwest saw the biggest increase, with prices rising 17 percent through August
- London had the lowest annual growth rate, at 8.3 percent
- Experts suggest this is the start of a downward trajectory for values as official numbers race to catch up with market turbulence
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Britain’s red-hot housing market is showing signs of slowing down as rising mortgage rates hit demand.
House prices rose 0.9 per cent in August to a record £295,903, according to the Office for National Statistics.
As a result, house prices were 13.6 percent higher than in August last year, raising the value of an average home by £36,000. But that was slower than the 16 percent increase in the year to July.
Britain’s red-hot housing market shows signs of slowing down as rising mortgage rates hit demand
The numbers are just the latest to indicate that the housing market is slowing after a pandemic boom.
Andrew Montlake, of mortgage broker Coreco, said: “There is unprecedented uncertainty at the moment. ‘House prices will come under real pressure, but the sharp declines of 10 to 15 percent that some are predicting are downright unrealistic.
“Prices are much more likely to flatline than go through the floor.”
The Southwest saw growth pick up the most, with prices rising 17 percent in the year to August. London had the lowest annual growth rate, at 8.3 percent.
Experts suggest this is the start of a downward trajectory for values as official numbers race to catch up with market turbulence.
Interactive Investor analyst Myron Jobson said: “There’s a definite lag between the latest data and what’s happening. More up-to-date house price indices paint a picture of a market that is running out, with rising mortgage rates and the demand for cost of living due to the crisis.’