UK Lloyds House Prices Stagnate

(RTTNews) - UK house prices remained unchanged in September after falling for two straight months amid higher interest rate expectations, monthly data published by Lloyds Banking Group showed Wednesday.

House prices were flat in September on a monthly basis, following a 0.3 percent fall in August and a 0.1 percent drop in July.

Prices were also unchanged annually in September compared to a decline of 0.4 percent in the preceding period.

The average property price was GBP 298,441 compared to GBP 298,395 in August. Lloyds Mortgages Director Andrew Asaam said property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of Base Rate.

It was reflected in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict, Asaam noted.

However, whether the picture continues will depend on how confident consumers feel that the latest cost of living pressures will prove temporary, he added.

Asaam said, "Confidence has long been a key driver of housing market activity, and will play an important role in shaping demand over the remainder of this year and into 2027."

Although higher mortgage rates and wider economic uncertainty are encouraging some people to take a more measured approach, new enquiries from prospective buyers reached their highest since February, he noted.

"That should help sustain activity in the near term, with any movement in house prices likely to remain modest," said Asaam.