Business · Economy · 9 hrs ago
UK home prices were flat in September as mortgage rates reached 6%
Home prices across Britain did not rise or fall in September, according to a Lloyds index.
The average home was valued at £298,400.
Prices had fallen slightly in August, but the index showed no change compared with a year earlier in September.
Meanwhile, the average rate on a five-year fixed mortgage reached 6% for the first time in three years.
Higher borrowing costs can weigh on buyers, but prices have so far remained steady as some demand continues.
Household spending has also held up despite pressure from energy and other living costs.
How many people choose to buy depends in part on whether consumers feel those pressures will ease; confidence is expected to shape housing demand through the rest of this year and into 2027.
House prices across Britain were unchanged in September, both month on month and year on year, according to the Lloyds index.
The average home value was £298,400 ($395,000).
The average fixed rate for a five-year mortgage reached 6% for the first time in three years.
Prices were unchanged after declines in the index in August.
Lloyds said the market appeared balanced between cautious buyers and underlying demand.
- Who
- Homeowners and buyers across Britain; the figures were reported by the Lloyds index.
- What
- House prices were flat in September, while the average five-year fixed mortgage rate reached 6%.
- When
- September; the article does not state the year of the figures.
- Where
- Britain.
- Why
- Lloyds said prices had remained resilient amid higher mortgage rates, with the market balanced between buyer caution and underlying demand.
This story does not have two clearly opposing sides.
Although the market has generally been characterized by relative calm, property prices have proven resilient so far amid rising mortgage rates, which are driven by changing expectations regarding the future path of the base interest rate.
At present, it seems that the housing market is in a state of balance between buyer caution and ongoing latent demand.
The Lloyds index recorded a 0.3% monthly decline in property values and a 0.4% annual decline.
The index showed no change in house prices month on month or year on year.
The average five-year fixed mortgage rate reached 6% for the first time in three years.
- Monthly price change in September
- 0%
- Annual price change in September
- 0%
- Average home value
- £298,400 ($395,000)
- Five-year fixed mortgage rate
- 6%
- Monthly price change in August
- -0.3%
- Annual price change in August
- -0.4%
Sources
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