According to Halifax, home values dropped by 0.1% from August House Prices In UK. The annual growth in housing prices was 9.9%, which was the weakest since January.
A recent reduction in a homebuyer tax, which was included in finance minister Kwasi Kwarteng’s “mini-budget,” as well as the persistent lack of properties that are available to purchase, according to Kim Kinnaird, director of Halifax mortgages, will sustain the market.
However, Kinnaird predicted that future interest rate hikes, rising inflation, and the effect of increasing mortgage borrowing costs on affordability “are expected to impose more severe downward pressure on prices.”
Kwarteng’s announcement of unfunded tax cuts last month has fuelled expectations in financial markets of higher Bank of England interest rates with some economists forecasting a House Prices In UK before long.
Halifax said London continued to have the slowest rate of annual growth in the country with house prices rising by 8.1% over the last year.
However, headwinds are intensifying, indicating that the market will slow down much more in the months to come “said Gardner. “Due to high inflation and historically low consumer confidence, household budgets are under tremendous strain.
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