The median house price in the UK rose 15.5 per cent in the year to July, up from 7.8 per cent in June, according to the Office for National Statistics.
This is the yearly high inflationary The prices seen since May 2003, reflect how prices in the same month last year were affected by the end of the stamp duty holiday, the ONS said.
The median house price in the UK was £292,000 in July 2022, £39,000 more than this time last year.
Tom Bill, head of UK residential research at Knight Frank, said: “The spike in house prices recorded in July tells us more about a tax holiday. could change the course of the housing market rather than where prices will head next.
“The government’s new energy package combined with record-low unemployment should help prop up the property market but soaring mortgage rates will ultimately hold back double-digit price gains for two years.” though we don’t expect prices to drop.
“Government is doing well in pre-election mode and further tax cuts will benefit the housing market in the short term. The risk is that a wider fiscal expansion means rates are ultimately down. will need to grow faster.”
Rising mortgage rates expected to push down house prices
Gabriella Dickens, senior UK economist at the Pantheon, said: “Looking ahead, we expect house prices to fall as soon as the second half of the year, given the scale of the increase in mortgage rates.
Interest rates on a two-year mortgage at 75% LTV spiked to 3.64% in August, from 1.64% in January and look set to rise to around 4.5% by year-end, if the market is correct on the current path for Bank Rates.
“Some of the most time stats have dropped.
“For example, the new buyer’s claim balance in the RICS Residential Market Survey for August fell to its lowest level since the market closed in the first round of lockdowns.
“However, there will be some offsetting support for prices, from the recently announced energy price ceiling, which will limit real income squeeze, ongoing supply scarcity and market cap. labor market recovery.
“All told, then, we think house prices will fall about 2% over the next six months and then start to recover in 2023, especially if the BoE holds back from raising Bank Rates as quickly as investors are now looking forward to.”
