2 days ago
UK House Price Growth Slows as First-Time Buyers Await Scheme
UK house prices grew much more slowly in September than they did in August.
The average home cost £274,251.
Prices also dipped slightly compared with the previous month.
Some regions, such as East Anglia, saw prices fall, while Northern Ireland performed better.
Mortgages are still expensive because interest rates and borrowing costs remain high.
The Government has announced a possible scheme called Your First Home.
It could let some first-time buyers in England buy new homes with a 2.5% deposit.
More details will be announced at the Budget on October 28.
Annual UK house price growth halved to 0.8% in September, with the average property costing £274,251.
Prices fell 0.2% month on month after seasonal adjustment, as buyers faced higher borrowing costs and economic uncertainty.
East Anglia recorded the largest annual decline at 0.7%, while Northern Ireland remained the strongest-performing region with 5.9% growth.
The proposed Your First Home scheme could let eligible first-time buyers in England purchase qualifying new-build homes with a 2.5% deposit.
The scheme’s income limits, property price caps and implementation details are expected at the October 28 Budget.
- Who
- UK homeowners, prospective buyers, first-time buyers, the Government and housebuilders are affected.
- What
- Annual house price growth slowed to 0.8%, while the Government announced the proposed Your First Home equity loan scheme.
- Where
- The housing data covers the UK, while Your First Home is proposed for England.
- When
- The figures cover September; scheme details are expected at the Budget on October 28.
- Why
- Higher mortgage costs, inflation concerns and economic uncertainty are weighing on buyers; the scheme is intended to help first-time buyers with small deposits and support new-build demand.
Key facts
- Annual price growth
- 0.8% in September, down from 1.6% in August
- Average property price
- £274,251
- Monthly price change
- Down 0.2% after seasonal adjustment
- Largest regional decline
- East Anglia, down 0.7% annually
- Strongest region
- Northern Ireland, up 5.9% annually
- Proposed minimum deposit
- 2.5% for eligible buyers under Your First Home
- Government equity loan
- 20% of the property value
- Mortgage rates
- Average two-year and five-year fixed rates were above 5.9%, according to cited Moneyfacts data
Quotes
Robert Gardner
Nationwide chief economist
“Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns.”
easterneye.biz
Sources
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