Average House Prices Edge Closer to £200,000
The average house price in the UK has almost reached £200,000, according to the latest survey from the Halifax.According to their report house prices rose by 0.4% in August, taking the average price to £199,770.
The lender is now predicting that prices will slow down this autumn, as the past year's five rate rises take effect.
"The increase in mortgage rates since last summer is having an effect on housing affordability and will bite further during the coming months," said Martin Ellis, the Halifax chief economist.
"Negative real earnings growth in the first six months of this year, and rising food prices, are also reducing the income households have available for housing."
The Halifax suggests that the market would slow down soon with lenders approving fewer mortgages during the summer months, interest from new buyers has fallen for eight months in a row, and actual property sales in July were 10% lower than a year ago and the increase in interest rates is continuing to affect people's disposable income.
"Prices rose by 1.6% between June and August, compared with 4.5% in the three months to March," said Mr Ellis.
"Whilst the market remains robust, this provides further evidence that house price inflation has slowed since the beginning of the year."
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