span>span>Thursday 1st September /span>span>2022/span>span> - 07:18 (BST)/span>/span>
UK house prices continued to push higher over August according to the latest figures from one of the country’s biggest lenders, Nationwide. Average house prices increased 10% year-on-year during last month, slowing slightly from an 11% increase during July and marking the thirteenth-consecutive monthly gain.
Market analysts believe this could be the start of a wider slow-down within the housing sector as mortgage approvals also showed signs of decline. Threat of a global economic recession, rising borrowing costs and a squeeze on household finances all look set to quell recent demand.
The Bank of England has increased its base interest rate half a dozen times since December as it tries to stem spiralling inflation. Its most recent 50bps increase was its largest in 27 years and pushed the average fixed-term mortgage rates towards 5%. Homebuyers are scrambling to respond to the rising costs - with some accelerating moves whilst others abandon them completely.
However, the likelihood of an all-out house price crash similar to that seen in 2008 have been significantly reduced as lenders have long since tightened their criteria for prospective borrowers. The number of 90% mortgages granted has fallen significantly from their early noughties heyday and now account for just 10% of the overall market.
