Last week, the Bank of England revealed that inflation is forecast to spike higher than expected this year – at 4% in September – before falling back to its 2% in 2027.
Moneyfacts said this “is likely to mean the base rate will hold around its current level for longer” which, after the last cut, is 4%.
Average house prices ticked up by more than £1,000 in July to £298,237, mortgage lender Halifax said last week.
Although this is close to a record high, Halifax’s head of mortgages, Amanda Bryden, said: “With mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.”
She added: “Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.
“We expect house prices to follow a steady path of modest gains through the rest of the year.”
