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UK house prices fall for third successive month amid Iran war uncertainty

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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