The solid 0.8% m/m increase in house prices in August suggested that house prices managed to retain some positive momentum despite growing pressure on households’ finances. But the drag on demand from the ongoing rise in mortgage rates and the coming jump in energy bills will only intensify the pain from here, leaving us comfortable with our view that house prices will start to fall by year-end.
Note: We’ll be discussing what a new UK prime minister could mean for the property market outlook in a Drop-In on Tuesday, 6th September. Register now.
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