Weekly Property News Round Up – 08.06.24

Welcome to this week’s edition of our Property News Roundup! We’re here to bring you the most current and insightful updates in the real estate market.

In this issue, we explore the resilience of house prices during the spring season, the stabilisation of the UK housing market driven by rising wages and consumer confidence, and the latest developments in mortgage rates as major lenders adjust their offers.

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Now, let’s have a look at the latest headlines that have caught our eye this week…

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Property news this week:

House prices remain resilient in Spring, says Halifax: House prices fell slightly in May by 0.1% meaning the average UK property is now £288,688, the Halifax House Price Index shows. The mortgage lender’s latest data shows over the last year house prices grew by 1.5% compared to 1.1% annual growth in April.

Halifax said the North West of England experienced the highest house price increases of any nation or region in the UK. Here prices grew by 3.8% over the year to May meaning a typical property in the region was now £232,258.

Amanda Bryden, head of mortgages, Halifax, said: “Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook.

UK house prices stabilise as rising wages and consumer confidence steady market: UK house prices held steady in May underpinned by rising wages and an increase in economic confidence during the important spring selling season, according to the latest data from mortgage lender Halifax.

Average house prices were stable in May, dipping 0.1% on a monthly basis. The typical UK home now costs £288,688 – reduced slightly from £288,862 in April, according to Halifax’s index. On an annual basis, prices were up by 1.5% in May and up from 1.1% in April.

The strongest performing area in the UK was the north-west of England, where house prices grew by 3.8% on an annual basis in May and the average price of a property in the region stands at £232,258. Northern Ireland also continued to show strong growth, up by 3.2% in May.

Mortgage News: TSB, Skipton Raise Rates As Hopes Fade For June Bank Rate Cut: TSB is increasing selected residential purchase rates by up to 0.2 percentage points from tomorrow (Friday), as growing numbers of lenders push up borrowing costs as hopes fade for a cut in the Bank of England Bank Rate on 20 June, writes Jo Thornhill. The bank has given notice to brokers that its two and five-year fixed rates for first-time buyers and home movers (at 75% loan-to-value up to 95% for two-year deals and 75% LTV up to 90% on five-year deals) will rise.

Its two-year rate for purchase will rise to 5.19% (75% LTV) with a £995 fee (up from 4.99%), while the five-year equivalent deal will be at 4.79% (up from 4.64%), also with a £995 fee. Rising swap rates, the fixed rates at which banks lend to each other in the wholesale markets and which influence mortgage rates, have been rising in recent days.

This is because the market now expects the Bank of England to cut interest rates in August at the earliest, rather than June. There has also been discussion about whether a cut in the Bank Rate two weeks prior to the General Election on 4 July might be interpreted as a political move.

That concludes this week’s updates. If you have any thoughts or questions about these headlines, feel free to reply—I’d love to chat with you about the latest market trends and discuss your investment goals.

I’ll be back next week with more insights on the property market. Enjoy your weekend!