The UK property market has reached a significant milestone, with house prices hitting their highest point in two years.
In August, the average price of a UK home rose to £292,505, marking a 4.3% increase compared to last year. This comes after the Bank of England's interest rate cut in early August, which has helped restore confidence among homebuyers.
Despite this positive development, affordability remains a challenge for many, with mortgage rates still around 5%, the highest level since 2008. However, further interest rate cuts are anticipated, which could provide more relief for buyers in the coming months.
Northern Ireland saw the strongest growth in house prices, with a 9.8% increase from last year, while the North West of England also showed notable growth. These figures reflect properties bought with mortgages, excluding cash purchases and buy-to-let investments.
Looking ahead, market experts expect a period of modest price growth, offering some relief to those entering the property market. However, with affordability still a major concern, especially for first-time buyers, the long-term outlook remains uncertain.
As the market continues to adjust, house prices are expected to see modest growth for the rest of the year, offering some hope for first-time buyers navigating the current financial landscape. All eyes are on the Bank of England’s next meeting, where further rate cuts could be announced.
Source: BBC News