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The mortgage lender in the country said that the growth of home prices in the United Kingdom slowed more than expected in January, as mortgage rates increased and the ability to afford costs continued along.
Average Home price It rose to 26,8213 pounds, an increase of 0.1 percent from the previous month and 4.1 percent on an annual basis – less than the annual height of 4.7 percent registered in December.
Reuters expected economists a monthly increase of 0.3 percent and an annual increase of 4.3 percent.
Alex Care, the economist at the Economic Consulting Company, said that the growth of home prices is slower than expected “was not very surprising due to the high mortgage rates adapted at the end of last year.”
Separate data on England Bank It showed on Thursday that the interest rates on the mortgage increased in December, when the average mortgage price increased for two years by 60 percent of a loan to value to 4.47 percent, an increase of 4.39 percent in November and 4.21 percent in October.
The average price was much less than its peak by 6.22 percent in the summer of 2023, but it rose from 1.1 percent in mid -2011, which means that the ability to afford the costs of mortgage remained extended.
Bank of England is expected to announce a lower percentage of interest in interest rates to 4.5 percent on Thursday. Markets pricing three price cuts throughout this year.
“With England expected interest rates next week, the expectations of the borrowers are discussing,” said Mark Harris, CEO of the SPF.
Experts say home prices are also supported by a possible increase in demand before the last conclusion of the conclusion of the conclusion. From April, buyers will start for the first time, for example, to pay a fee for real estate of 300,000 pounds or more, instead of 425,000 pounds at the present time.
Nationalwide mentioned improving the ability to afford the costs of housing last year thanks to the growth of wages.
However, the potential buyer who earns the average UK income and the purchase of a typical buyer for the first time with a 20 percent deposit will still have a monthly real estate payment equivalent to 36 percent of their salaries at home-much higher than long-term in the long run medium 30 percent.
Moreover, home prices are still high for average profits, with a buyer rate for the first time at home to profits 5.0 at the end of 2024, and still is higher than a long term in the long term of 3.9.
“The market has shown flexibility,” despite the pressure of the ability to withstand costs. ”
“While there was a modest improvement over the past year, the ability to withstand costs is still extended according to historical standards,” he said.
