UK Housing Market Sees Record High Prices Amidst Mortgage Rate Cuts

The UK housing market has reached a record high, with the average price tag on a home reaching £375,131 in May, according to Rightmove. This 0.8% increase in prices is largely driven by pent-up demand from would-be buyers who paused their plans last year. Despite mortgage rates remaining elevated for longer than anticipated, the number of sales being agreed during the first four months of the year is 17% higher than last year.

Record high prices in the UK housing market

In some positive signs for the mortgage market, HSBC UK, Barclays, and TSB have cut their mortgage rates. This could be a welcome relief for homebuyers, especially with the average time between agreeing a sale and legal completion taking around five months.

“The momentum of the spring selling season has exerted enough upwards price pressure to reach a new record asking price.” - Tim Bannister, Rightmove’s director of property science

However, the lengthy time to complete a sale after finding a buyer remains a challenge for both agents and movers. Would-be sellers hoping to celebrate Christmas in a new home need to be coming to the market about now.

 Mortgage rates have been cut by some lenders

In related news, Hinckley & Rugby Building Society has introduced a range of mortgages to help skilled foreign workers in the UK buy homes. The mutual’s latest offering for skilled worker and health and care worker visa holders addresses three key barriers: no minimum income, no minimum UK residency, and no minimum duration remaining on the current visa.

 Hinckley & Rugby Building Society’s new mortgage range

The new mortgage products aim to assist brokers in helping foreign workers who meet affordability criteria but lack sufficient UK residency to qualify with other lenders.

“Bringing their essential skills to the UK, and committing to a new life here, skilled foreign workers deserve the opportunity to feel they truly belong, and owning their own home is a big part of that.” - Laura Sneddon, head of mortgage sales at Hinckley & Rugby Building Society

In other news, a hotel part-owned by Gary Neville and other ex-Manchester United legends has been named one of the best places to work in hospitality. The Body Shop’s administrators are to launch an auction of the chain after concluding that an alternative restructuring of one of Britain’s best-known high street retailers was not viable.

 Gary Neville’s hotel named one of the best places to work in hospitality

The UK’s mega-rich are dwindling, according to the latest Sunday Times Rich List. The energy price cap is set to fall by about 7% in July, a leading thinktank has said.

 Energy price cap set to fall by 7% in July

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