UK property prices rising at a snail’s pace

<img width="562" height="339" src="https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England.jpg 730w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-230×138.jpg 230w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-380×228.jpg 380w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-88×53.jpg 88w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-150×90.jpg 150w, https://www.leaprate.com/wp-content/uploads/2017/01/bank-of-England-500×301.jpg 500w" sizes="(max-width: 562px) 100vw, 562px" /><p>Market specialists attributed the phenomenon to the effect of higher interest rates. According to Rightmove data, house prices fell by 0.8% and agreed house sales declined by 17% during the 12 months leading up to October.</p>
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<p>In an attempt to bring inflation under control, the Bank of England raised interest rates 14 times in a row. During its September interest meeting, the institution kept the rate at 5.25%. This is, however, still the highest the interest has been since the <a href="https://www.leaprate.com/interview/exclusive-high-inflation-lessons-from-the-past-an-interview-with-ceo-stavros-lambouris/" target="_blank" rel="noopener">2008 catastrophe</a>.</p>
<p>The situation also impacts renters, who face higher-priced leases as landlords battle to keep up with their mortgage payments. Other data shows that the average rent in Great Britain rose to £1,325 per month from £1,186 according to year-on-year analyses. Rightmove’s property expert, Tim Bannister, said:</p>
<blockquote><p>Some sellers are pricing more competitively, but estate agents are reporting that others still need to adjust their expectations on the price they’re likely to achieve in this lower-activity market, where six in ten homes are now selling. In the busy post-pandemic market, we were seeing eight in ten sold.</p></blockquote>
<p>The Guardian, citing a Hamptons analysis on UK and the Bank of England data, shows that landlords pay 40% for mortgage interest as of August 2022. The company also predicted that interest costs could escalate to approximately £20bn as fixed-interest periods come to an end.</p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/financial-services/uk-property-prices-rising-at-a-snails-pace/">UK property prices rising at a snail’s pace</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>