Halifax forecasts slight increase in property prices: Opportunity for first-time buyers?

The prospect of lower mortgage rates and upcoming interest rate cuts could lead to a 'moderate' increase in property prices by the end of the year, according to Halifax. This assessment is based on the observation of a slight increase in property prices in July, following a period of stagnation over several months. Halifax emphasized that the recently decreased mortgage rates are particularly encouraging for first-time buyers, home movers, and refinancers. At the same time, the mortgage company warned of ongoing challenges related to affordability and the limited supply of available properties. Amanda Bryden, Head of Mortgage Business at Halifax, stated: 'Against the backdrop of lower mortgage rates and possible further base rate cuts by the Bank of England, we expect property prices to increase moderately over the course of the year.' Last week, the Bank of England cut the interest rate to 5% - the first reduction since the start of the pandemic in March 2020. This rate influences the cost of borrowing from major banks and other financial service providers, including mortgages and credit cards. The largest mortgage lender in the United Kingdom reported that the average price for a property in July was £291,268, representing an increase of over £2,200 compared to the previous month.