MENA Newswire News Desk: UK house prices have experienced their fastest growth rate since November 2022, despite concerns about potential changes in the upcoming Autumn Budget. According to the Halifax House Price Index, the average property price in the UK rose 4.3% year on year and 0.3% month on month, reaching £292,505. London remains the most expensive property market, with average prices now at £536,056, representing a 1.5% increase over the previous year.
Despite a positive outlook for the housing market, experts have raised concerns over the potential impact of fiscal changes in the forthcoming budget, particularly in capital gains and inheritance taxes. Amanda Bryden, Head of Mortgages at Halifax, commented, “Recent price rises build on a largely positive summer for the UK housing market. While easing interest rates are boosting buyer confidence, affordability remains a challenge, especially as higher mortgage costs are still impacting prospective homeowners.”
Typically, housing market activity slows down in August, but this year has been different. Emma Jones, Managing Director at Whenthebanksaysno.co.uk, said, “Continued rate cuts from lenders throughout the summer have fed into higher demand. August saw far more buyer inquiries than usual, as the market defied its seasonal slowdown.”
Peter Stimson, Head of Product at MPowered Mortgages, explained that reduced rates from the Bank of England have played a role in increasing market activity. “It wasn’t an average August,” he said. “The feel-good factor from reduced interest rates helped push buyers and sellers into the market.”
However, concerns remain about potential tax hikes in the upcoming budget, which could affect future mortgage pricing. Stephen Perkins, Managing Director at Yellow Brick Mortgages, warned, “Only the Autumn Budget could derail the current momentum in the housing market. Demand has been fierce, driven by falling mortgage rates as lenders fight for market share.”