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    Property Prices on a Steady Rise

    House prices remained steady in May, slightly rising to £375,000, keeping the price growth at 0.8% this year. Prices have now remained steady around the same level for about 16 months. Despite this data being level, it is predicted that house prices are due to grow by 2.5% in 2024.

    Average asking prices have slightly increased every month since January 2024, this shows that there is a growth in the confidence of new sellers. In the property market across the UK, sales agreed are up by 17%. With average asking prices rising to new records in most areas, and mortgage rates remaining high, gathering funds for many home-buyers is still difficult.

    Furthermore, on average, UK private rents have increased by 8.9% in the 12 months to now, leaving the average rent in the UK at £1,223 pcm. This creates a rising income for investors of buy-to-let properties. 

    Inflation at a 3-Year Low

    Inflation fell to 2.3% which is the lowest level for the past three years. However, the drop in inflation wasn’t as much as what was predicted. Analysts predicted that the inflation rate would fall to 2.1%, closer to the Bank of England’s 2% target. This Makes the chance of an early interest rate cut decrease. The main reason for a decrease in the consumer prices index (CPI), was due to the falling energy and food costs.

    With the rising pressure on individuals to stay within budgets, there is a reluctance to buy high-priced items. Furniture retailers reduced prices by 0.9% in the past 2 months, and the cost of all goods dropped by 0.8% month on month, due to the fall in demand. Annual services inflation, which usually measures the costs companies charge each other, was steady currently at 5.9%, barely down from the previous month’s 6%.

    A sharp spike in property rents and higher mortgage costs over the last year has kept the measure of inflation that includes housing costs much higher than the main CPI. The consumer prices index including housing rose by 3% year on year as a result of these factors.

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