Annual UK home costs decline by most since 2009

Costs rose by 0.1 per cent in June from Might.

Britain’s housing market is slowing because the Financial institution of England raises rates of interest sharply in an try to curb the best inflation fee among the many world’s huge wealthy economies.

Earlier this yr, the market confirmed indicators of stabilisation after the turmoil of late 2022 when former Prime Minister Liz Truss’s “mini-budget” plans for tax cuts roiled monetary markets.

However a run of stronger-than-expected inflation figures has pushed up bond yields and mortgage rates of interest, most lately after the BoE raised its base fee by half a share level final week.

A lot of the affect of upper borrowing prices on mortgage-holders has but to hit the housing market.

Trade physique UK Finance estimates 800,000 fixed-rate mortgages will should be refinanced within the second half of this yr, and an additional 1.6 million in 2024, out of a complete of round 9 million residential mortgages.