With many lenders reviewing their mortgage rates as higher base rates begin to impact, inflation in the housing market is finally cooling correspondingly. Agreed house prices rose by 0.4% in the last month according to Your Move data.
August agreed prices averaged at £183,012, up just 0.4% from July’s average of £182,438. Year on year, agreed house prices rose at a rate of 6.3% to August 2007 according to Your Move data. But over the last six months, agreed prices have risen 2.1% from £179,158 in February 2007, an annualised rate of 4.2%. The August monthly increase is in line with this trend with the annualised rate of growth at 4.3%.
Your Move managing director, David Newnes said: “House price inflation is finally showing real evidence of slowing. Five base rate rises this year are clearly having the desired effect.
“The holiday season over August usually contributes to a seasonal slowdown. The implementation of HIPs has clearly hampered the market a little over the summer months. But the flattening off of house prices shouldn’t be seen as cause for panic. Rather, it should be a sign of success in inflationary control for the Bank of England. We would therefore urge the MPC not to put rates up any further.”
