UK house prices: Are higher interest rates cooling the market?
UK House Prices Drop Again as Higher Interest Rates Cool the Market
Steven
Hey Stephany, did you see that UK house prices dropped again last month? It looks like higher interest rates are cooling the market.
Stephany
Yes, I did see that. According to Halifax, the average house price dropped by 2.4% on an annual basis in July. That's actually an improvement compared to June, when prices fell by 2.6%. But it's still the fourth consecutive monthly decline.
Steven
That's true, but Halifax predicts a "gradual" decline in prices rather than a sharp drop. They also mentioned that the market is showing some resilience, although Southern England and Wales are experiencing the most downward pressure on property prices.
Stephany
I'm not so sure about that. Another lender, Nationwide, reported that house prices fell at the fastest annual rate in 14 years last month, by 3.8%. And online portal Rightmove also reported a decrease in the average price tag on homes coming onto the market.
Steven
Well, it seems like there's some disagreement among lenders about the severity of the decline. But one thing is clear, higher interest rates are definitely having an impact on the housing market.
Stephany
Absolutely, and it's not just the interest rates. Halifax also mentioned that landlords are being hit by reform worries. It's becoming more challenging for them to maintain their properties and attract tenants.
Steven
That's a good point. It's not just about buying and selling houses, but also about the rental market. Landlords play a crucial role in the housing market, and if they're struggling, it could have broader implications.
Stephany
Exactly. It's important to consider the overall health of the housing market, not just the buying and selling prices. We need to think about the impact on homeowners, renters, and the economy as a whole.
Steven
I couldn't agree more. It's a complex issue that requires careful analysis and consideration. We'll have to keep an eye on how these factors continue to unfold in the coming months.