![]() ![]() ![]() Higher interest payments are already hitting households, with an estimated 700,000 UK households missed or defaulted on a rent or mortgage payment last month, data from Which? shows. Halifax’s data comes two days before the Bank of England is expected to raise UK interest rates for the 12th time in a row, to 4.5%, as it battles inflation. ![]() Last week, rival lender Nationwide reported that the average house price rose by 0.5% in April after seven months of declines. While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions. Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers. The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months. The sharp fall in prices we saw at the end of last year after September’s ‘mini-budget’ preceded something of a rebound in the first quarter of this year as economic conditions improved. House price movements over recent months have largely mirrored the short-term volatility seen in borrowing costs, says Kim Kinnaird, director of Halifax Mortgages, who explains: ![]()
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