UK house prices fall for third successive month amid Iran war uncertainty
Summary
UK house prices fell for the third month in a row in May, dropping by 0.1% despite expectations they would rise. Higher mortgage rates, influenced by uncertainty from the war in Iran, have made buying homes more expensive and reduced demand.Key Facts
- The average UK house price was £298,806 in May, down 0.1% from April.
- This decline marks the third consecutive monthly drop in UK house prices.
- Mortgage rates have risen, with the average two-year fixed rate at 5.66% in May, up from 4.83% in March.
- Inflation slowed to 2.8% in April, partly due to a lower household energy price cap.
- Analysts expected a 0.1% rise in house prices, but prices fell instead.
- Annual house price growth slowed to 0.5% in May, below expectations of 1%.
- Higher borrowing costs make it harder for buyers to afford homes, limiting demand.
- There is more choice for buyers due to steady prices and available properties, which helps people trying to buy their first home.
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