House prices rose 13.6% in August as experts expect the median price to reach £300,000

House prices rose 13.6 per cent in August according to official figures, with experts expecting the average price to reach £300,000 despite economic uncertainty.

Across the UK, the median house price is now £295,903, up 0.9 per cent from July, according to the Office for National Statistics.

The rate of home price inflation has slowed from July when the figure was up 16 percent from a year earlier.

The number of homes for sale has also increased by 50 percent since April, according to real estate agent body PropertyMark.

Slower growth: Home prices rose 13.6% in August, down from July when they rose 16% year-over-year according to the Office for National Statistics.

Ian Mackenzie, chief executive of The Guild of Property Professionals, said: ‘You would be forgiven for assuming that the political and economic turmoil we have seen over the past few months will have a larger and more immediate impact on house prices.

The truth is that home prices depend on a variety of factors, including housing supply and demand, and the effects are often slow to show.

“These numbers show that there is a slight slowdown in growth year-over-year, but it is far from a blizzard.”

He added that the real estate market was reassured by the fact that the stamp duty changes announced in the mini-budget are among the few policies that have not undergone a radical change in recent days.

Jeremy Leaf, North London estate agent and former RICS Chairman, added: ‘The slightly historical nature of these comprehensive figures shows the strength in the housing market before it hit stocks at the end of September.

“Since then, activity has slowed and rates have eased a bit but there is still a lot of pent-up demand, not least to take advantage of current favorable mortgage rates before they shoot higher.”

However, since the former advisor’s mini-budget last month, mortgage rates have risen rapidly.

Earlier this week, the average fixed rate for a two-year fixed-rate mortgage across all loans-to-value rose to 6.53 per cent, a day after new chancellor Jeremy Hunt returned much of the government’s tax cut package.

The average rate for five-year fixed deals also rose to 6.36 percent, although it declined slightly to below 6.30 percent at the end of last week, according to financial information service Moneyfacts.

The last time the average two-year fixed mortgage was 6.4 percent or more was in August 2008 during the fallout from the global financial meltdown when it reached 6.94 percent.

Those in need of a new mortgage can access updated rates based on their specific circumstances using the This is Money mortgage calculator.

Increased interest: The price of fixed-rate deals has continued to rise since the end of last year, but this has accelerated since the government's mini-budget.

Increased interest: The price of fixed-rate deals has continued to rise since the end of last year, but this has accelerated since the government’s mini-budget.

More homes coming to the market

PropertyMark numbers show that since April, the number of homes for sale per branch of the real estate agent has increased from 20 to 30. This is the highest percentage Level since March 2021 when it was at 31 per member branch.

Inflation was reported today at 10.1 per cent in September, but despite higher interest rates and cost of living increases, SpermityMark said there was still demand to move.

The number of buyers registered in each branch has also increased.

However, dealerships report that since April, more than half (52 percent) of sales have been completed below asking price, indicating some heat is letting out the market.

Since April, the number of homes for sale per PropertyMark member real estate agent branch has increased from 20 to 30, an increase of 50%.

Since April, the number of homes for sale per PropertyMark member real estate agent branch has increased from 20 to 30 – an increase of 50%

The increase in housing stock in the market has brought supply and demand back into balance after a period of high demand which contributed to the continuous increase in housing prices despite the turbulent conditions.

However, 48 percent of properties are still completing at or above the asking price, which means there is still a way to go to pre-pandemic levels. Between 2015 and 2020, 78 percent of sales were below asking price.

Nathan Emerson, CEO of Property Mark, said: “During August and September, we saw an increase in people wanting to value and sell their homes. This is great news for buyers who have previously missed out.

“As the economic climate changes, sellers will need to be realistic about the prices they may achieve, but since most people move every 15 years or so, they are still seeing a lot higher in value than they would have paid.”

What to do if you need a mortgage

Borrowers who need to find a mortgage because their existing fixed-rate deal is coming to an end, or because they’ve agreed to buy a home, are urged to act but not panic..

Banks and building societies are still lending and mortgages are still being accepted with applications accepted.

However, rates change quickly, and there is no guarantee that deals will stick and won’t be replaced by mortgages that charge higher rates.

This is Money’s best mortgage rate calculator powered by L&C that can show you deals that match the value of your mortgage and property.

What if I need to re-travel?

Borrowers should compare rates, talk to a mortgage broker, and be prepared to work to secure a rate.

Anyone with a fixed-rate deal that expires within the next six to nine months should consider how much a remortgage will cost now — and consider a new deal.

Most mortgage deals allow a fee to be added to the loan and then only charged when you take it out. By doing this, borrowers can secure a rate without paying expensive arrangement fees.

What if I’m buying a house?

Those who have agreed to buy homes should also aim to lock in prices as early as possible, so they know exactly what their monthly payments will be.

Homebuyers should beware of overexerting themselves and be prepared for the possibility of home prices falling from their current high levels, due to high mortgage rates limiting people’s ability to borrow.

How to compare mortgage costs

The best way to compare mortgage costs and find the right deal for you is to talk to a good broker.

You can use our best mortgage rates calculator to show matching deals for your home value, mortgage size, term needs and flat rates.

Be aware that rates can change quickly, so the advice is that if you need a mortgage to compare rates then speak to a broker as soon as possible, so they can help you find the right mortgage for you.

> Check out the best fixed rate mortgages you can apply for

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