Quilter says UK house prices stall as mortgage rates climb above 6%
EWU•Quilter said UK house prices stalled as Lloyds’ September index showed 0.0% annual growth and an average home value of GBP 298,441. Five-year fixed mortgage rates moved back above 6%.
1. Prices show no annual growth
Lloyds’ September index showed UK house prices with 0.0% annual growth and an average home value of GBP 298,441, Quilter said.
2. Borrowing costs constrain demand
Quilter said affordability pressures, weaker confidence and higher borrowing costs were capping demand and limiting the scope for meaningful near-term price growth. Five-year fixed mortgage rates moved back above 6%, with monthly repayments viewed as the key constraint for buyers. Budget-related policy uncertainty was expected to delay transactions as households waited for clarity on tax and housing measures. Iran-linked geopolitical risk was seen as sustaining higher energy prices, keeping inflation elevated and complicating interest-rate expectations.
