UK HOUSE PRICE GROWTH FALLS-Prices reportedly fell by 0.2% as average price of a home slipped to £274,251
Annual house price growth halved in the UK last month, as economic uncertainty sparked by conflict in the Middle East continued to deter homebuyers.
The average price of a British home reportedly rose by 0.8% in the year to September to £274,251, which was half the rate recorded in August, when house prices grew 1.6% year on year. It also marked the slowest pace of home price growth since December last year.
House prices across the UK fell 0.2% month on month, after taking account of seasonal effects.
The reported subduing of house prices in the recent months has fed led to higher interest rates on mortgages, making it more expensive for people to buy new homes.
A UK agency reported earlier this week that the average interest rate on a two-year fixed mortgage in the UK had risen to its highest level since July 2024, while the average rate on a five-year fixed rate mortgage hit its highest level since October 2023. Both were sitting above 5.9%.
That could rise further, given that investors are pricing in a 92% chance that the Bank of England will raise interest rates, from 3.75% to 4%, at its next meeting on 5 November. Markets expect the Bank to institute at least three further rises in 2027, taking the base rate to 4.75% by the end of next year.
