UK House Prices Fall For The First Time This Year
Property prices across the UK fell this month as stricter lending rules put the brakes on the runaway housing market.
Asking prices in Britain have fallen for the first time this year as stricter lending rules, looming interest rate rises, and the distraction of the World Cup cool the rampant housing market.
The advertised cost of a UK home fell 0.8pc from £272,275 in June to £270,159 in July, according to new data from the property portal, Rightmove.
The North and the East Midlands suffered the biggest declines of 1.9pc each, while house prices in Greater London dropped 0.4pc this month, as the Capital hit an affordability ceiling and demand across the country curtailed.
Property values have fallen for the first time in 2014, down by £2,116, with the UK’s annual growth rate slowing from 7.7pc in the 12 months to June to 6.5pc in the year to July, due to tighter regulation on mortgage eligibility, the Rightmove House Price Index revealed.
Buyer confidence may also have taken a knock with suggestions that mortgages are becoming harder to get, and repayments may get more costly sooner than originally anticipated, should the rumours of an interest rate rise before the next election come true.
The central bank told banks and building societies that they should only make 15pc of their total loans at 4.5 times the borrowers’ income and introduced a futuristic interest rate stress test for borrowers.
Such market disruption and additional red tape has slowed the mortgage approval rate and is being felt on the ground by UK estate agents.
This house price wobble is seen by the property portal as a seasonal dip during a traditionally quiet time of the year, that will pick back up in September, driven by a lack of housing stock.