06 September 2024
If you are covering the latest Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The latest Halifax house price index suggests the typical mid-summer lull in housing market activity has had little impact on house prices this year, as the average UK house price rose by 0.3% in August following a 0.9% rise in July. Meanwhile, the annual rate of house price growth has jumped to 4.3% - the highest rate since November 2022. However, this largely reflects the impact of significantly weaker prices this time last year.
“A dip in activity is usually to be expected in the summer months, but this year it appears to be minimal, and we are instead seeing signs of an ongoing recovery in the housing market. Though the report from Halifax is somewhat at odds to others such as Nationwide which reported a fall in prices in August, there remains a general consensus that growth, at least on an annual basis, is picking up speed.
“The Bank of England’s decision to cut its base rate from 5.25% to 5% at its most recent monetary policy meeting will no doubt have contributed to the relatively robust market we have seen this summer, and as conditions become more predictable, we could see a rebound in prices in the autumn. For buyers, the impact of any Bank rate cuts in the near future will likely be relatively small, and the most immediate effects will be seen on tracker and standard variable rate mortgages, while fixed rate mortgage costs will likely factor in any cuts ahead of time. Though any cuts are likely to be gradual, the more stable landscape could see prospective buyers return to market.
“Though things appear to be heading in the right direction as far as mortgage rates are concerned, there are still a large number of people who are on fixed-rate deals that will soon end, forcing them to take on considerably higher bills than they have been accustomed to. Similarly, prospective buyers will face a dilemma as to whether to lock in a fixed-rate mortgage for the stability they provide or to opt for a tracker mortgage in the hopes that they will benefit from future rate cuts. For all who find themselves needing a new mortgage deal or are looking to move home, professional mortgage advice will be invaluable in ensuring they are getting the best possible deal for their circumstances.”
