The UK Property market is stabilising ahead of the widely anticipated interest rate cuts from the Bank of England
Showing strong signs of resilience, UK house prices unexpectedly rose in June, data from lender Nationwide revealed. This suggests the property market is stabilising ahead of the expected interest rate cuts from the Bank of England. Property prices were up 0.2 per cent between May and June, following a 0.4 per cent rise the previous month and contractions in March and April, new data showed on Monday. The rise took the average house price to £266,064, which was 1.5 per cent higher than in the same month last year, up from 1.3 per cent in the previous month. Both figures exceeded analysts’ expectations. Economists polled by Reuters expected a 0.1 per cent month-on-month contraction and a 1.1 per cent annual increase in prices.
In London, where house prices are the most expensive with an average cost of £525,248, costs rose by an annual rate of 1.6 per cent. Whilst the usual seasonal spring bounce in the UK housing market has been a little late, an almost certain new government and the first rate cut since March 2020 should inject more energy after the summer.
