A recent study by Halifax identifies North-east England as the most affordable area in the UK for buying a house, amidst rising mortgage costs and economic speculations affecting the British pound.
A recent Halifax study has identified North-east England as the most affordable region in the UK to buy a house, with an average property price of £172,538. Other affordable areas highlighted include Northern Ireland and Scotland, with average house prices of £192,502 and £204,579 respectively. The study notes a minimal rise in house prices in April 2024 following a dip in March, suggesting a stabilization of prices early in the year.
Conversely, London and South-east England continue to be the costliest regions, with average house prices recorded at £539,336 and £384,972, respectively. This price surge is attributed to higher mortgage costs ensuing from expectations that the Bank of England may not cut interest rates significantly due to persistent high inflation.
Amanda Bryden, Halifax’s head of mortgages, stated that there is a growing positive sentiment in the housing market, with predictions pointing to a modest annual growth of about 2.5% in property prices for 2024. Shifts in buyer behavior, such as opting for smaller properties due to higher borrowing costs, are noted, indicating adjustments within the market.
On a related note, there are increased speculative activities against the British pound, driven by expectations of interest rate cuts by the Bank of England by summer 2024. According to the US Commodity Futures Trading Commission, speculative positions against the pound are at a 16-month peak, correlating with disappointing UK economic data and a decrease in inflation rates. Comparatively, expectations for US interest rate cuts are less aggressive, leading to a divergence in economic outlooks between the UK and the US. Investors and analysts are closely anticipating the Bank of England’s next steps, expected to be announced later in the week, although immediate rate changes are not foreseen.
