The latest snapshot on the UK housing market sees “significant downward pressure” on prices as mortgage costs rise.
The monthly report by Halifax showed just a 0.1% dip in prices last month from August but that the annual rate of growth had slowed from 11.4% to 9.9%.
It also, however, pointed to factors supporting prices including the shortage of new homes, strong wage growth and cuts to stamp duty revealed in the government’s mini-budget.
The country’s largest mortgage lender said that predicting the path for prices ahead was tough given that the market has consistently outperformed expectations but the price trend suggested a downwards path in the short term due to affordability concerns.
It spoke up after it was revealed that the average mortgage interest rate had risen to above 6%, according to data from financial information company Moneyfacts.
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It means households are paying the greatest portion of their income on mortgage payments since 1989 at a time when the rate of inflation is running at a 40-year high.
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Mortgage burden to hit 80s levels
The mortgage rate shift reflects a higher base rate of interest – currently at 2.25% – imposed by the Bank of England as part of its bid to tackle the surge in inflation mostly caused by the fallout from Russia‘s war in Ukraine.
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However, market mayhem that followed the chancellor’s tax giveaway also prompted mortgage rates to rise as lenders, including Halifax, pulled products temporarily to ensure they reflected higher funding costs.
Kim Kinnaird, director of Halifax Mortgages, said of the market conditions: “The events of the last few weeks have led to greater economic uncertainty, however in reality house prices have been largely flat since June, up by around £250.
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Shop around for mortgage deals
“This compares to a rise of more than £10,000 during the previous quarter, suggesting the housing market may have already entered a more sustained period of slower growth.
“Predicting what happens next means making sense of the many variables now at play, and the housing market has consistently defied expectations in recent times.
“While stamp duty cuts, the short supply of homes for sale and a strong labour market all support house prices, the prospect of interest rates continuing to rise sharply amid the cost of living squeeze, plus the impact in recent weeks of higher mortgage borrowing costs on affordability, are likely to exert more significant downward pressure on house prices in the months ahead.”
The home secretary has admitted the UK’s illegal immigrant numbers are “too high” – but said Nigel Farage can “sod off” after he claimed she sounded like a Reform supporter.
Speaking to Sky News’ political editor Beth Rigby, the home secretary said: “I acknowledge the numbers are too high, and they’ve gone up, and I want to bring them down.
“I’m impatient to bring those numbers down.”
She refused to “set arbitrary numbers” on how much she wanted to bring illegal migration down to.
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Beth Rigby: The two big problems with Labour’s asylum plan
Earlier on Monday, Ms Mahmood announced a new direction in Labour’s plan to crack down on asylum seekers.
The “restoring order and control” plan includes:
• The removal of more families with children – either voluntarily through cash incentives up to £3,000, or by force; • Quadrupling the time successful asylum seekers must wait to claim permanent residency in the UK, from five years to 20; • Removing the legal obligation to provide financial support to asylum seekers, so those with the right to work but choose not to will receive no support; • Setting up a new appeals body to significantly speed up the time it takes to decide whether to refuse an asylum application; • Reforming how the European Convention on Human Rights (ECHR) is interpreted in immigration cases; • Banning visas for countries refusing to accept deportees; • And the establishment of new safe and legal refugee routes.
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Home secretary announces details on asylum reform
Reform UK leader Nigel Farage said the plan was much like something his party would put forward, and said Ms Mahmood sounded like a Reform supporter.
The home secretary responded with her usual frankness, telling Rigby: “Nigel Farage can sod off. I’m not interested in anything he’s got to say.
“He’s making mischief. So I’m not going to let him live forever in my head.”
Image: Nigel Farage said the home secretary was sounding like a Reform supporter
She earlier announced refugee status would be temporary, only lasting two and a half years before a review, and they would have to be in the UK for 20 years before getting permanent settled status, instead of the current five years.
Ms Mahmood said Reform wanted to “rip up” indefinite leave to remain altogether, which she called “immoral” and “deeply shameful”.
The home secretary, who is a practising Muslim, was born in Birmingham to her Pakistani parents.
Earlier, in the House of Commons, she said she sees the division that migration and the asylum system are creating across the country. She told MPs she regularly endures racial slurs.
BBC chair Samir Shah has said there is “no basis for a defamation case and we are determined to fight this” – after Donald Trump said he would sue the corporation for between $1bn and $5bn.
It comes after the US president confirmed on Saturday he would be taking legal action against the broadcaster over the editing of his speech on Panorama – despite an apology from the BBC.
Image: Samir Shah said the BBC’s position ‘has not changed’. Pic: Reuters
In an email to staff, Mr Shah said: “There is a lot being written, said and speculated upon about the possibility of legal action, including potential costs or settlements.
“In all this we are, of course, acutely aware of the privilege of our funding and the need to protect our licence fee payers, the British public.
“I want to be very clear with you – our position has not changed. There is no basis for a defamation case and we are determined to fight this.”
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On Saturday, President Trump told reporters legal action would come in the following days.
“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he said.
“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”
The BBC on Thursday said the edit of Mr Trump’s speech on 6 January 2021 had given the “mistaken impression that President Trump had made a direct call for violent action”.
The broadcaster apologised and said the splicing of the speech was an “error of judgment” but refused to pay financial compensation after the US leader’s lawyers threatened to sue for one billion dollars in damages unless a retraction and apology were published.
Image: Deborah Turness. Pic: Reuters
Image: Tim Davie. Pic: PA
The Panorama scandal prompted the resignations of two of the BBC’s most senior executives – director-general Tim Davie and news chief Deborah Turness.
The broadcaster has said it will not air the Panorama episode Trump: A Second Chance? again, and published a retraction on the show’s webpage on Thursday.
A British man who hacked the X accounts of celebrities in a bid to con people out of Bitcoin, has been ordered to repay £4.1m-worth of the cryptocurrency, prosecutors say.
Joseph James O’Connor, 26, was jailed in the United States for five years in 2023 after he pleaded guilty to charges including computer intrusion, wire fraud and extortion.
He was arrested in Spain in 2021 and extradited after the country’s high court ruled the US was best placed to prosecute because the evidence and victims were there.
The Crown Prosecution Service (CPS) said on Monday it had obtained a civil recovery order to seize 42 Bitcoin and other crypto assets linked to the scam, in which O’Connor used hijacked accounts to solicit digital currency and threaten celebrities.
The July 2020 hack compromised accounts of high-profile figures including former US presidents Barack Obama and Joe Biden, and Amazon founder Jeff Bezos.
O’Connor and his co-conspirators stole more than $794,000 (£629,000) of cryptocurrency after using the hacked accounts to ask people to send $1,000 in Bitcoin to receive double back.
Prosecutor Adrian Foster said the civil recovery order showed that “even when someone is not convicted in the UK, we are still able to ensure they do not benefit from their criminality”.
The order, which valued O’Connor’s assets at around £4.1m, was made last week, following a freeze placed on the hacker’s property, which prosecutors secured during extradition proceedings.
Image: Barack Obama was one of the famous people to have their Twitter account hacked
Image: Elon Musk was among those targeted by scammers in a Twitter hack
A court-appointed trustee will liquidate his assets, the CPS said.
The attack also compromised the X (then Twitter) accounts of other high-profile figures including Tesla chief executive Elon Musk, investor Warren Buffett, and media personality and businesswoman Kim Kardashian.
The hack prompted the social media platform to temporarily freeze some accounts.
X said 130 accounts were targeted, with 45 used to send tweets.