Latest news with #AmandaBryden
The Guardian
4 days ago
- Business
- The Guardian
July yields fastest rate of UK house price rises this year, says lender
UK house prices rose at the fastest monthly rate this year in July as mortgage rates eased and banks offered bigger home loans, according to the lender Halifax. The average property price grew by 0.4% in July to £298,237, Halifax found, ahead of expectations of a 0.3% rise. Cheaper mortgage rates and rising wages have helped to revive the property market, the lender said. The figures were released as the Bank of England's monetary policy committee voted to cut base rates by a quarter point to 4%. Amanda Bryden, head of mortgages at Halifax, said falling mortgage rates, combined with banks' more flexible affordability assessments, had resulted in 'a housing market that continues to show resilience, with activity levels holding up well. 'We expect house prices to follow a steady path of modest gains through the rest of the year.' She said the second half of the year would see a rise in homeowners coming to the end of their fixed-rate deals taken out during the pandemic when the base rate was as low as 0.1%. 'While most borrowers coming to the end of five-year, fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households,' she said. 'Those coming off a two year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget. 'We're unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets.' Richard Donnell, executive director at the property portal Zoopla, said the rate cut was unlikely to make a big difference to the cost of mortgages for homebuyers. 'The price of fixed rate mortgages already factors in the future path of base rates meaning average mortgage rates are likely to remain broadly where they are today,' he said. The average two-year, fixed rate for a buyer with a 20% deposit is now 4.4%, compared with 5.2% this time last year, according to analysis by the rival portal Rightmove. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Tom Bill, head of UK residential research at Knight Frank, said the modest growth in house prices in July suggested that the market was 'getting back on its feet' after disruption during 'April's stamp duty cliff-edge'. Temporary stamp duty cuts in England and Northern Ireland ended in April, adding thousands of pounds to the cost of many transactions. Separate figures from Nationwide last week found that house prices rose by 0.6% in July to an average of £272,664. Halifax found that in Northern Ireland, average house prices rose by 9.3% in the past year to £214,832, the strongest rate across the UK. Scotland also reported a 4.7% growth in July to £215,238, while in Wales prices rose by 2.7% to an average of £227,928.
Times
4 days ago
- Business
- Times
House prices rise as property market continues to defy downturn
House prices in the UK increased by 0.4 per cent in July, the fastest monthly increase since the start of the year, according to Halifax. The figure was above economists' expectations of a 0.3 per cent month-on-month increase. Compared to the same period last year, house prices rose by 2.4 per cent to £298,237, slowing from a year-on-year increase of 2.7 per cent in June. Last week, Halifax's rival Nationwide said that house prices had risen by 0.6 per cent in July compared to the previous month. The housing market in Britain has settled after a rush earlier in the year to beat changes to stamp duty thresholds that took effect in April. The changes, announced in Labour's budget last October, lowered the threshold for paying the tax from house purchases above £250,000 to £125,000, while first-time buyers would have to pay stamp duty on purchases above £300,000, down from £425,000. Amanda Bryden, the head of mortgages at Halifax, said she expected house prices to follow a steady path of modest gains through the rest of the year. 'Challenges remain for those looking to move up or onto the property ladder, but with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving,' Bryden said. 'Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.' The figures come as data from HMRC showed that the number of residential property sales increased in June. The number of UK home sales rose by a seasonally adjusted 13.4 per cent month-on-month to 93,530 in June, according to the tax authority. Separate data from the Bank of England also showed that the number of mortgages approved for house purchases increased in June by 1.4 per cent to 64,167. Bryden added that the second half of the year would see a notable rise in homeowners coming to the end of fixed-rate deals taken during the pandemic-era property boom, during ultra-low interest rates. • Business live: House prices rise as buyers shrug off stamp duty 'Those coming off a two-year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget.' 'While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households', Bryden said. The Bank of England is widely expected to cut its main interest rate to 4 per cent from 4.25 per cent later on Thursday, which would improve mortgage affordability. However, the outlook for further reductions in borrowing costs is unclear due to persistent inflation pressures, even as the jobs market cools. Halifax said that house prices rose fastest in Northern Ireland, where the average home price rose by 9.3 per cent year-on-year to £213,832 in July. In Scotland, house prices rose by 4.7 per cent year-on-year to £125,238, while property prices in Wales saw a rise of 2.7 per cent to £227,928. In England, the North West and Yorkshire & Humber saw the highest rate of property price inflation, with house prices rising in both regions by 4 per cent to £242,293 and £215,532 respectively. Prices rose more slowly in the south of England, by less than 1 per cent year-on-year, though London remains the most expensive part of the UK, with the average house costing £539,914.
Yahoo
4 days ago
- Business
- Yahoo
UK house prices rise by over £1,000 in July
UK house prices rose by 0.4% in July, or more than £1,000 in cash terms, marking the highest monthly increase so far this year, according to Halifax. Across the UK, the average property value in July was £298,237, up from £297,157 in June. Amanda Bryden, head of mortgages at Halifax, said that July's increase represents "the biggest monthly rise since the start of this year." She said: "The average house price is now £298,237, 2.4% higher than a year ago. While the national average remains close to a record high, it's worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type." Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership House prices increased by 2.4% compared to the same time last year, down slightly from a 2.7% annual rise in June. Bryden acknowledged the ongoing challenges faced by those looking to move up the property ladder, by saying that affordability remains a key concern. However, she pointed to the easing of mortgage rates and rising wages as positive developments. Read more: How you can still make money from flipping property "The picture on affordability is gradually improving," she said. "Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well." The Bank of England is widely expected to cut its main interest rate to 4% from 4.25% later on Thursday but the outlook for further reductions in borrowing costs is unclear due to persistent inflation pressures, even as the jobs market cools. Bryden added that she expects house prices to follow a "steady path of modest gains through the rest of the year." On the regional front, Northern Ireland continues to lead the UK in house price growth, with prices rising by 9.3% over the past year. The typical home in the region now costs £214,832. Scotland also saw positive growth in July, with house prices increasing by 4.7%. The average property in Scotland now costs £215,238. Wales recorded a more moderate increase, with prices rising by 2.7%, bringing the average cost of a home to £227,928. Among the English regions, the North West and Yorkshire & the Humber experienced the highest rates of inflation. Prices in the North West rose by 4% to £242,293. Yorkshire & the Humber also saw a 4% increase, with average prices rising to £215,532. The South West, London, and the South East continued to see more moderate price increases. In London, property prices rose by 0.5%, bringing the average to £539,914, the highest in the UK. The South West saw a modest rise of 0.2%, reflecting a more gradual pace of growth in these traditionally high-demand areas. The second half of the year will also see a rise in homeowners coming to the end of fixed-rate mortgage deals that were taken out during the pandemic-era property boom, when ultra-low interest rates and rising house prices created a unique market dynamic. Bryden said: "Most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, but the extent of this will vary across households." However, for those coming off shorter-term fixed-rate deals, particularly two-year terms taken out during the peak following the 2022 mini-budget, monthly payments are likely to drop. "We're unlikely to see a significant impact on house prices," Bryden said. "But it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets." Read more: New renters in London pay record-breaking £2,201 per month Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'Anyone preparing to buy with a mortgage — whether upsizing, downsizing or stepping onto the property ladder for the first time — should find an independent broker to source the best options for their needs. "Most deals can be fixed up to six months in advance, and if rates improve, borrowers with a product already in place have the option to switch to a better option. A product switch with an existing lender can be simpler, however, as transferring to a new provider might incur new fees and a more complex legal process — so be prepared for delays. "Halifax expects modest house price gains over the rest of the year but with the summer selling season in full swing and listings on the rise, as second homeowners and buy-to-let landlords head for the exit to escape higher tax bills, now could be a good time to secure a discount. For sellers, realistic pricing may be key if they want to secure a prompt sale.' Thomas Lambert, financial planner at Quilter, added: "While mortgage rates have drifted lower and affordability rules have been eased, many households are still constrained by high living costs and sluggish income growth. For first-time buyers, even small increases in rates or property prices can make the difference between buying and staying put." Rival lender Nationwide (NBS.L) said last week that its measure of house prices rose by 0.6% in July compared with June. Nathan Emerson, CEO of Propertymark, said: ''Lenders are adapting to market trends by offering more competitive products, however, with the average deposit needed to purchase a home now exceeding £60,000, more support is needed to make homeownership a realistic aspiration for more people." Read more: How school fees can affect your mortgage borrowing The pros and cons of getting a mortgage into your 70s Pros and cons of lifetime ISAsError while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Glasgow Times
4 days ago
- Business
- Glasgow Times
Average UK house price jumps by more than £1,000 month-on-month
Across the UK, the average property value in July was £298,237, up from £297,157 in June. Amanda Bryden, head of mortgages at Halifax, said: 'UK house prices rose in July, up by 0.4% (£1,080 in cash terms), the biggest monthly increase since the start of this year. 'The average house price is now £298,237, 2.4% higher than a year ago. 'While the national average remains close to a record high, it's worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type. 'Challenges remain for those looking to move up or on to the property ladder. 'But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving. 'Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well. 'We expect house prices to follow a steady path of modest gains through the rest of the year.' Looking across the UK, Northern Ireland continued to be the strongest-performing area, with house prices typically rising by 9.3% annually, Halifax said. In Scotland, property values rose by 4.7% and in Wales they increased by 2.7% on average. In England, the North West and Yorkshire and the Humber recorded the strongest annual property price inflation, at 4.0%. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'Housing market activity is picking up, driven by increased listings, easing borrowing costs and a relaxation of mortgage lending rules.' Thomas Lambert, a financial planner at wealth manager Quilter, said: 'This improvement comes despite the lingering impact of stamp duty threshold changes earlier in the year, which have increased upfront costs for many buyers and us being deep into the summer lull. 'While mortgage rates have drifted lower and affordability rules have been eased, many households are still constrained by high living costs and sluggish income growth. 'For first-time buyers, even small increases in rates or property prices can make the difference between buying and staying put.' Nathan Emerson, chief executive of property professionals' body Propertymark, said: 'Lenders are adapting to market trends by offering more competitive products.' Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: 'While in our offices we experienced a brief lull in activity at the start of the school holidays, it has picked up significantly since then. 'Serious buyers are committing and keen to move before the end of the year.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Mortgage rates continue to edge downwards but it's not just pricing that is improving, with lenders also broadening policy, including increasing loan-to-income caps and lowering some income requirements, which is boosting affordability.' Tom Bill, head of UK residential research at Knight Frank, said: 'The UK housing market is getting back on its feet following the disruption of April's stamp duty cliff edge, but high levels of supply are keeping prices in check. 'We expect low single-digit annual growth by the end of the year but that depends on the content of the autumn budget. 'Some parts of the economy are already adopting the brace position and buyers could begin to hesitate after the summer if speculation over tax rises persists. 'The conundrum for the housing market is that the Government needs to increase its financial headroom to keep borrowing costs in check but without sentiment-sapping tax hikes.' Here are average house prices and the annual increase, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data): East Midlands, £245,182, 2.4% Eastern England, £334,494, 1.1% London, £539,914, 0.5% North East, £177,251, 3.2% North West, £242,293, 4.0% Northern Ireland, £214,832, 9.3% Scotland, £215,238, 4.7% South East, £388,260, 0.5% South West, £302,306, 0.2% Wales, £227,928, 2.7% West Midlands, £260,265, 2.6% Yorkshire and the Humber, £215,532, 4.0%
The Herald Scotland
4 days ago
- Business
- The Herald Scotland
Average UK house price jumps by more than £1,000 month-on-month
Amanda Bryden, head of mortgages at Halifax, said: 'UK house prices rose in July, up by 0.4% (£1,080 in cash terms), the biggest monthly increase since the start of this year. 'The average house price is now £298,237, 2.4% higher than a year ago. 'While the national average remains close to a record high, it's worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type. 'Challenges remain for those looking to move up or on to the property ladder. 'But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving. 'Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well. 'We expect house prices to follow a steady path of modest gains through the rest of the year.' Looking across the UK, Northern Ireland continued to be the strongest-performing area, with house prices typically rising by 9.3% annually, Halifax said. In Scotland, property values rose by 4.7% and in Wales they increased by 2.7% on average. In England, the North West and Yorkshire and the Humber recorded the strongest annual property price inflation, at 4.0%. Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'Housing market activity is picking up, driven by increased listings, easing borrowing costs and a relaxation of mortgage lending rules.' Thomas Lambert, a financial planner at wealth manager Quilter, said: 'This improvement comes despite the lingering impact of stamp duty threshold changes earlier in the year, which have increased upfront costs for many buyers and us being deep into the summer lull. 'While mortgage rates have drifted lower and affordability rules have been eased, many households are still constrained by high living costs and sluggish income growth. 'For first-time buyers, even small increases in rates or property prices can make the difference between buying and staying put.' Nathan Emerson, chief executive of property professionals' body Propertymark, said: 'Lenders are adapting to market trends by offering more competitive products.' Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: 'While in our offices we experienced a brief lull in activity at the start of the school holidays, it has picked up significantly since then. 'Serious buyers are committing and keen to move before the end of the year.' Mark Harris, chief executive of mortgage broker SPF Private Clients, said: 'Mortgage rates continue to edge downwards but it's not just pricing that is improving, with lenders also broadening policy, including increasing loan-to-income caps and lowering some income requirements, which is boosting affordability.' Tom Bill, head of UK residential research at Knight Frank, said: 'The UK housing market is getting back on its feet following the disruption of April's stamp duty cliff edge, but high levels of supply are keeping prices in check. 'We expect low single-digit annual growth by the end of the year but that depends on the content of the autumn budget. 'Some parts of the economy are already adopting the brace position and buyers could begin to hesitate after the summer if speculation over tax rises persists. 'The conundrum for the housing market is that the Government needs to increase its financial headroom to keep borrowing costs in check but without sentiment-sapping tax hikes.' Here are average house prices and the annual increase, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data): East Midlands, £245,182, 2.4% Eastern England, £334,494, 1.1% London, £539,914, 0.5% North East, £177,251, 3.2% North West, £242,293, 4.0% Northern Ireland, £214,832, 9.3% Scotland, £215,238, 4.7% South East, £388,260, 0.5% South West, £302,306, 0.2% Wales, £227,928, 2.7% West Midlands, £260,265, 2.6% Yorkshire and the Humber, £215,532, 4.0%
