Autumn Housing Market: A Blossoming Outlook
- Sarah Ruivivar
- Aug 14
- 2 min read
Autumn, the season of crunchy leaves, pumpkin spice, and, according to Nationwide, a blooming housing market!
July has already given us a sneak peek, with annual house price growth nudging up to 2.4% from June's 2.1%. Monthly prices rose by 0.6%, factoring in those pesky seasonal effects.
Nationwide’s chief economist, Robert Gardner, assures us that despite the stamp duty holiday's roller-coaster, housing activity is holding its ground. With 64,200 mortgages approved in June, we're cruising along the pre-pandemic average, even with the interest rate shuffle.
Affordability is on the up, thanks to robust income growth, mellow house price increases, and a gentle dip in mortgage rates. The price-to-income ratio is now at a decade-low of 5.75, a far cry from the 2022 peak of 6.9. This is music to the ears of potential buyers, easing deposit woes and buoyed by more accessible high loan-to-value mortgages.
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Mortgage rates are also playing nice. A five-year fixed-rate mortgage sits at around 4.3% for those with a 25% deposit. While it's not the bargain basement rates of autumn 2021, it's a relief from the late 2023 highs of 5.7%.
Despite global economic jitters, the UK housing landscape is promising. Unemployment is low, earnings are climbing, and household finances are robust. If the Bank Rate dips further, borrowing costs might just follow suit.
So, as long as the broader economic recovery stays on track, expect the housing market to keep its gentle upward momentum. Here’s to a season of growth, both in gardens and property portfolios!
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Access from your preferred podcast provider by clicking here
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