House prices fell by 3.5% annually in June – and a sharp increase in borrowing costs is likely to exert a “significant drag” on housing market activity – according to an index.
The 3.5% fall follows a 3.4% annual decline in house prices in May, Nationwide Building Society said.
“Longer term borrowing costs have risen to levels similar to those prevailing in the wake of the mini-budget last year, but this has yet to have the same negative impact on sentiment. A 10% deposit on a typical first-time buyer home is equal to around 55% of gross annual income, Nationwide said. He said: “A combination of healthy rates of income growth and modest price declines should improve affordability over time, especially if mortgage rates moderate.”
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “The jump in mortgage rates also likely will increase the flow of buy-to-let landlords selling up, which will lead to a faster increase in the stock of unsold properties and a strengthening of buyers’ ability to negotiate discounts.” Alex Lyle, director of London-based estate agency Antony Roberts, said: “There is still lots of activity and plenty of offers coming in, although many of these buyers aren’t under offer themselves.
Belgique Dernières Nouvelles, Belgique Actualités
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