Property costs have been flat in June after falling by 0.3% in Might, Halifax’s home value index has revealed.
The long-term pattern has nonetheless been a value uplift nonetheless, as the typical value stands at £296,665, following a 2.5% improve year-on-year.
Sarah Coles, head of private finance, Hargreaves Lansdown, stated: “A serious downside is that houses have change into so costly that it’s pushing affordability to the restrict.
“And whereas mortgage charges have fallen, they’re not dropping significantly quick and stay a lot larger than now we have been used to in the previous couple of years.
“It’s one cause why property gross sales are stronger in elements of the nation the place costs are typically decrease.
“Lenders have reacted to larger home costs by providing extra flexibility over how a lot individuals can borrow.
“Nevertheless, should you’re contemplating stretching your funds to purchase a brand new house, at a time when costs are so sluggish, it’s very important to not push your self to the brink and find yourself being pressured to promote at a time when costs might not have risen sufficient to cowl your prices.”
Whereas home value progress is sluggish, mortgage approvals and property transactions picked up, fuelled by rising wages and progressively falling rates of interest.
Amanda Bryden, head of mortgages, Halifax, stated: “After all, challenges stay. Affordability remains to be stretched, significantly for these coming to the tip of fixed-rate offers.
“The financial backdrop additionally stays unsure; whereas inflation has eased, it’s nonetheless above goal, and there are indicators the roles market could also be softening.
“However with markets pricing in two extra fee cuts from the Financial institution of England by 12 months finish, and the typical fee on newly drawn mortgages now at its lowest since 2023, we proceed to count on modest home value progress within the second half of the 12 months.”
Property costs in Northern Eire are up 9.6% in a 12 months, Scotland 4.9% and the North West of England, by 4.4%.
Nicholas Finn, managing director of Garrington Property Finders, stated: “In lots of areas the variety of houses coming onto the market far exceeds the variety of potential consumers.
“That is protecting value rises to a minimal, and even pushing costs down. In some areas the glut of provide is so acute that property brokers are refusing to checklist houses the place they really feel the proprietor is asking for an unrealistic value.
“The imbalance is biggest in southern England, however is not simply restricted to the capital and its commuter belt.
“Halifax’s information exhibits that the slowest fee of value progress is now within the South West – a mirrored image of the big numbers of second houses and vacation let properties being bought by their disenchanted homeowners.
“The online impact has been to show the south right into a purchaser’s market – by which consumers can ask for, and with the proper vendor, get a major discount in asking value.”
