Annual house price growth rises by 2.9% as hopes of imminent interest cut fade

In the 12 months starring up to September 2024, mean location prices roseate successful England to £309,000 (a 2.5% yearly increase), successful Wales to £217,000 (0.4%), and successful Scotland to £198,000 (5.7%)

Annual location terms maturation accelerated to 2.9% successful September, according to authoritative figures.

The Office for National Statistics (ONS) stated that the mean spot worth crossed the UK is £292,000. The ONS estimated that the yearly gait of terms maturation accrued from 2.7% successful the twelvemonth to August.

In the 12 months starring up to September 2024, mean house prices roseate successful England to £309,000 (a 2.5% yearly increase), successful Wales to £217,000 (0.4%), and successful Scotland to £198,000 (5.7%).

The mean location terms for Northern Ireland was £185,000 betwixt April and June, marking a 6.4% summation from the erstwhile year. These figures were released arsenic the ONS announced that Consumer Prices Index (CPI) ostentation accelerated to 2.3% successful October, up from 1.7% successful the erstwhile month.

Economists had predicted an ostentation summation of 2.2%, making this higher than expected. David Hollingworth, subordinate manager astatine L&C Mortgages, commented connected the leap successful inflation, stating it could "bring further headaches for owe borrowers".

He added: "Although the complaint lifting supra people is not a shock, astatine 2.3% it is simply a small higher than galore had expected. That volition determination much acold h2o connected the prospects for different chopped to (the Bank of England) basal complaint to travel adjacent month, which volition beryllium disappointing quality for those connected a adaptable oregon tracker complaint mortgage."

Mortgage adept Mr Hollingworth has noted a caller uptick successful fixed complaint mortgages, cautioning that this inclination is linked to gloomier expectations astir involvement rates: "Those increases are owed to the little optimistic forecast for involvement rates and today’s figures volition bash thing to alteration that.

"Although inactive expected to fall, the increasing anticipation has been for rates to autumn much dilatory and not arsenic acold arsenic antecedently anticipated."

Alice Haine, a idiosyncratic concern expert astatine Bestinvest by Evelyn Partners said: "Homeowners and first-time buyers are apt to beryllium disheartened by the latest ostentation reading, arsenic it reduces the likelihood of a 3rd complaint chopped this year."

She added, "The mean outgo of a caller fixed complaint owe has been creeping up since the Budget, arsenic lenders terms their products to bespeak expectations that involvement rates whitethorn enactment higher for longer."

The ostentation update seems dire for owe payers according to Haine, who warned that "mortgage borrowers could person much symptom to contend with if much lenders set their rates upwards" pursuing an ostentation surge supra the Bank of England’s 2% target.

SPF Private Clients' CEO Mark Harris pointed retired that immoderate further simplification successful rates could beryllium connected the horizon, albeit perchance adjacent year: "Further complaint reductions are much apt adjacent twelvemonth than this one, with swap rates rising connected the backmost of today’s ostentation figures.

"However, portion ostentation roseate much than expected, it’s inactive lone conscionable supra the 2% people and fluctuations are not unexpected."

Nick Leeming, president of Jackson-Stops property agents, has noted: "Despite the basal complaint being chopped to 4.75%, this simplification is not yet feeding done into owe rates owed to outer headwinds.

"But the marketplace should instrumentality assurance from the information that enactment levels are up year-on-year."

On the rental front, ONS information revealed UK backstage rents soared by 8.7% successful the 12 months up to October, somewhat edging past September's 8.4% yearly spike, albeit inactive shy of March's record-setting 9.2%.

Sarah Coles, idiosyncratic concern guru astatine Hargreaves Lansdown, said: "Getting bully quality astir your rent is astir arsenic communal arsenic discovering your housemates person washed up for you, oregon your landlord suggesting you get a dog.

"It means for many, the lone mode retired of the endless rhythm of rising costs is to buy, but this is acold easier said than done erstwhile rents sorb truthful overmuch of your income."

Nathan Emerson, CEO astatine Propertymark conveyed: "Selling up altogether oregon turning to the short-term letting marketplace is becoming a much charismatic enactment for landlords owing to the onerous legislative changes and accrued fiscal liabilities they encounter."