UK house prices stalled in September, with 0% growth on both a monthly and an annual basis, according to an index.
uncertain
prices → stall → index
It also recorded a 0.0% change compared with September last year, following a 0.4% annual dip in August.
asserted
It → record → August
Andrew Asaam, mortgages director at Lloyds, said: “While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of (the Bank of England) base rate.
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which → say → rate
“That’s mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict.
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many → mirror → conflict
“Whether that picture continues is likely to depend on how confident consumers feel that the latest cost‑of‑living pressures will prove temporary.
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pressures → continue → ?
“For now, the housing market appears to be balancing buyer caution with continued underlying demand.”
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market → appear → demand
On Monday, the average five-year fixed homeowner mortgage rate on the market reached the 6% mark for the first time in three years, according to financial information website Moneyfacts.
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rate → fix → Moneyfacts
Ian Futcher, a financial planner at wealth manager Quilter said: “Lloyds’ latest house price index shows UK property prices flatlined in September, leaving annual growth flat at 0.0% and the average home valued at £298,441.
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home → say → 298,441
“The market is facing gathering dark clouds on several fronts, with affordability, confidence and borrowing costs all coming under pressure, which is in turn causing house prices to stall.
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prices → face → turn
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“When purchasing a home is one of the biggest financial decisions a person will ever make, uncertainty alone can be enough to delay a move by weeks or even months.
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uncertainty → read → weeks
“The ongoing conflict involving Iran continues to cast a long shadow over the economic outlook.
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conflict → involve → outlook
“Concerns that elevated energy prices and broader geopolitical uncertainty could keep inflation higher for longer have filtered through to financial markets, raising questions about the path of future interest rates and leaving households facing a more uncertain economic backdrop.
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prices → keep → backdrop
“These concerns are already feeding through to the mortgage market.
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concerns → feed → market
Borrowers who only a few months ago were becoming more optimistic about the prospect of cheaper borrowing are now seeing that outlook shift significantly.”
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outlook → become → borrowing
Nathan Emerson, chief executive at property professionals’ body Propertymark, said: “Against a backdrop of continued pressure across the global economy, it is perhaps unsurprising to see some fluctuation in domestic house prices.
“It is important to remember that, over a prolonged period, house price growth is rarely a straightforward upward trend.”
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growth → say → period
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The high cost of fuel and rising energy bills, combined with uncertainty surrounding the upcoming Budget, as well as the prospect of higher mortgage payments, are all giving buyers reason to pause.”
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cost → say → reason
Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: “Buyers are still out there, but they’re being careful.”
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they → base → Roberts
Tom Bill, head of UK residential research at Knight Frank, said: “This year has been a story of rising energy prices and stalling house prices, as the unpredictable Middle East conflict unfolds and drives borrowing costs higher.”
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conflict → say → costs
He added: “We think downward price pressure will continue during the final months of the year as the impact of higher mortgage rates feeds slowly through to buyers.”
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impact → add → buyers
Sarah Coles, head of personal finance at AJ Bell, said: “If mortgage rates remain high, there’s a decent chance that an unremarkable autumn could make way for a more miserable winter.
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autumn → say → winter
“It could become more of a struggle to sell and we could see prices fall.”
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prices → become → struggle
Here are average house prices and the annual change, according to Lloyds (the regional annual change figures are based on the most recent three months of approved mortgage transaction data):
East Midlands, £243,949, minus 0.8%
Eastern England, £330,151, minus 1.6%
London, £531,548, minus 2.2%
North East, £184,546, 2.4%
North West, £248,932, 1.9%
Northern Ireland, £231,917, 7.4%
Scotland, £223,330, 3.4%
South East, £380,829, minus 2.1%
South West, £299,572, minus 1.4%
Wales, £231,287, 1.2%
West Midlands, £260,892, 0.8%
Yorkshire and the Humber, £215,211, minus 0.6%
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Midlands → accord → data
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