UK house prices have reached a two-year high, with the average price of a house sold in August rising to £292,505, just £1,000 shy of the record set in June 2022. The housing market has shown resilience, with prices increasing by 0.3% in August and 4.3% on an annual basis, the strongest rise since November 2022. Recent cuts to mortgage rates have helped buyers afford homes, and the Bank of England is expected to cut interest rates further this year, which could continue to support the market.
Northern Ireland led the way in annual house price growth, with prices rising by 9.8%, followed by Wales at 5.5%, the North West at 4.0%, Scotland at 1.7%, and London at 1.5%. Despite the overall positive trend, affordability remains a challenge for potential buyers adjusting to higher mortgage costs.
Experts predict that the housing market will continue to see modest growth for the remainder of the year, fueled by increased market activity and potential further interest rate reductions. The positive outlook for the housing market comes amid global uncertainty, with investors closely watching the latest US jobs report to gauge how America’s central bank may respond with interest rate cuts.
Overall, the UK property market is on a road to recovery, with increasing buyer confidence and the possibility of further interest rate reductions expected to support continued growth in house prices. The resilience of the market, along with rising prices in certain regions, suggests a positive outlook for the UK housing market in the coming months.
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