Housing Prices in the UK Have Peaked

Housing prices in the UK have peaked. Housing prices increased by 13.4 percent year-on-year.

Housing prices in the country increased by 13.4 percent annually in June, according to data from the Nationwide Building Society. Accordingly, the fastest increase in housing prices since November 2004 was recorded. On a monthly basis, it was observed that housing prices increased by 0.7 percent. Accordingly, the average prices exceeded the level of 254 thousand pounds. The series of monthly increases in housing prices in the country reached the third month.

Mortgage Interest Rates Dropped to the Lowest Levels

The 16-month curfew imposed by the government in order to control the coronavirus epidemic brought about an increase in the demand for housing located outside of urban areas. At the same time, consumers benefited from record low borrowing costs in the real estate market and temporary tax relief on purchases. Nationwide Chief Economist Robert Gardner said, "Although home prices are at an all-time high, loan payments are not high by historic standards." The data showed that prices rose in all parts of the UK. The regions with the highest increases were Northern Ireland and Wales, with 14% and 13.4% respectively. Scotland and London were the regions that showed the least increase. Housing price rates in the capital London increased from 4.8 percent to 7.3 percent compared to the previous quarter.