House costs fall for the primary time in a 12 months, says Halifax, as rate of interest hikes put the squeeze on consumers… however the common residence nonetheless prices £293,221
- Average home worth within the UK is now £293,221
- Rate of progress fell from 12.5% in June to 11.8% final month
- Wales confirmed the strongest annual progress within the UK as costs rose 14.7%
House costs within the UK fell barely in July dropping 0.1 per cent in comparison with the month earlier than, the primary lower since June 2021.
The annual price of progress additionally eased with costs rising 11.8 per cent within the twelve months to July, in contrast with an increase of 12.5 per cent to June, in keeping with Halifax.
A typical UK property now prices £293,221.
The dip in progress is the primary time lower since June 2021 in keeping with Halifax
Russell Galley, managing director, Halifax, mentioned ‘While we should not learn an excessive amount of into any single month, particularly as the autumn is just fractional, a slowdown in annual home worth progress has been anticipated for a while.
‘Leading indicators of the housing market have just lately proven a softening of exercise, whereas rising borrowing prices are including to the squeeze on family budgets in opposition to a backdrop of exceptionally excessive home price-to-income ratios.’
‘Looking forward, home costs are prone to come below extra stress as these market tailwinds fade additional and the headwinds of rising rates of interest and elevated dwelling prices take a firmer maintain. Therefore a slowing of annual home worth inflation nonetheless appears the almost definitely state of affairs.’
Financial stress on households and excessive earnings to cost ratios imply a slowdown in property costs as been anticipated.
Wales noticed the best home worth inflation in July with costs up 14.7 per cent, with a mean property worth of £222,639. It’s carefully adopted by the South West of England, which additionally continues to report a robust price of annual progress, up by 14.3 per cent, with a mean property price of £310,846.
While London continues to report slower annual home worth inflation than the opposite UK areas, the speed of seven.9 progress is the best in virtually 5 years. With a mean property now costing £551,777 the capital’s already report common home worth continues to push greater, up by £40,361 over the past 12 months.
First time purchaser houses noticed a drop in worth inflation to 10.7 per cent in July, down from 12.4 per cent in June. The price of progress continues to lag behind worth rises for residence movers which noticed a rise of 12 per cent in July, down from 12.5 in June.
Price progress for bigger properties continues to outpace smaller houses, the common worth for a indifferent home rose 15.1 per cent over the 12 months, in comparison with 7.7 per cent for residences. These are will increase of £60,860 and £11,962 respectively.
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