House prices slip as rate worries weigh

Uncertainty and rising rates are combining to put pressure on buyers who are growing increasingly cautious, which in turn is pressurising prices.

House price growth dipped in May and the annual rate of growth fell to -1.0%¹. The Bank of England’s Monetary Policy Committee increased Bank Rate to 5% in June. Borrowing costs are now at their highest since 2008. Those with tracker or variable rates have seen higher repayments and those on fixed rates are contemplating their next move. Some are predicting that many homeowners may be forced to sell when their current fixed-term ends, the market could see a boost to supply, reinforcing a downward price movement.

Whatever happens in the months ahead, we’re here to help.

Your home may be repossessed if you do not keep up repayments on your mortgage

¹Halifax, 2023