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The growth of the prices of houses in the UK has slowed more than expected in January, because the mortgage rates were marked and accessibility remained stretched, said the mortgage lender throughout the country.
Average The price of the house It increased to £ 268,213, which is 0.1 percent compared to the previous month and 4.1 percent of the year – less than an annual increase of 4.7 percent recorded in December.
The economists surveyed by Reuters expected a monthly increase of 0.3 percent and an annual increase of 4.3 percent.
More slower than the expected growth of the house price “is not too surprising given the increase in the quoted mortgage rates at the end of last year,” said Alex Kerr, an economist of Consultancy Capital Economics.
Separate data from Bank of England On Thursday, in December, a mortgage interest rate increased, with an average rate for a two -year fixed mortgage with a loan and value ratio of 60 percent, increased to 4.47 percent, which is 4.39 percent in November and 4.21 percent in October.
The average rate was significantly below the top of 6.22 percent in the summer of 2023, but compared to 1.1 percent in mid -2021, which means that the mortgage accessibility remained stretched.
Boe is expected to announce a decrease in interest rates on Thursday at 4.5 percent on Thursday. Markets are the prices of three reductions in the rate this year.
Mark Harris, Executive Director of the Hypotarcan Intermediaries of the SPF private clients, said: “Given that the Bank of England will reduce interest rates next week, the prospect of borrowers in search of.”
Experts say home prices are also supported by potential increase in demand on the eve of the expiration of a recent holiday. Since April, for example, customers who will start paying a real estate levy for the first time worth £ 300,000 or more, instead of £ 425,000.
Nationwide reported to improve the accessibility of apartments last year, partly thanks to wages growth.
However, a potential buyer who earns an average revenue in the UK and buying a typical customer assets with a 20 % deposit would still have a monthly mortgage that is equivalent to 36 percent of their salary from home-known above the long-term average of 30 percent.
Furthermore, the house prices remain high compared to the average profit, with the ratio of the price and earning ratio of the first customer at the end of 5.0 at the end of 2024, still above the long -term average of 3.9.
Robert Gardner, a major economist from all over the country, said the market has shown resistance, “despite the liquid pressures of accessibility.”
“Although a modest improvement occurred last year, accessibility remains stretched on historical standards,” he said.
