Prices for houses and apartments in the UK reached the highest level in the last 2 years in August 2024. This suggests that the real estate market has recovered from the effects of the infamous "Liz Truss mini-budget", which led to a sharp rise in the cost of borrowing.
According to Halifax, the average cost of housing in the country increased by 0.3% in August, to 292,505 pounds. In July, the growth was 0.9% month-on-month.
On an annual basis, prices rose 4.3% in August, which is the highest since November 2022.
Amanda Bryden, head of Mortgage at Halifax, comments: "Potential buyers feel more confident due to lower interest rates.The average cost of housing is now only 1,000 pounds behind the record high set in June 2022.
The Bank of England recently lowered interest rates from 5.25% to 5%. The first decline in four and a half years supported the market.Price dynamics in some regions:
- Northern Ireland: +9.8% year-on-year, to 201,043 pounds.
- Wales: +5.5% year-on-year, to 224,433 pounds.
- England: +4% year-on-year, up to 232,917 pounds.
- London: +1.5% year-on-year, to an average of 536,056 pounds.
Source: The Guardian