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UK House Prices Slip Again as Mortgage Costs Rise

Higher energy costs tied to the Middle East conflict have lifted inflation expectations, pushing mortgage rates back near 5%.

Overview

  • Halifax, which reported Friday, said April prices fell 0.1% after a 0.5% drop in March, leaving values 0.4% higher than a year earlier.
  • The typical home cost £299,313 in April, with first-time buyers paying an average £238,908, the lowest level recorded this year.
  • Rightmove said two- and five-year fixed mortgage deals now average 5.1%, making new loans and remortgages more costly for many households.
  • The Bank of England held its key rate at 3.75% last week, while investors are pricing in two quarter-point increases by the end of 2026.
  • Measures point in different directions, as Nationwide reported a 0.4% monthly rise to a record £278,880 and Halifax showed stronger annual gains in Northern Ireland than in London and the South East.