Not only has the Bank of England’s standard interest rate changed from the Summer of 2017, but house prices are looking different as well. The Bank’s Monetary Policy Committee (MPC) increased the rate twice since last summer. Since March 2009 the rate had stayed steady at 0.25%. In November of last year, and recently at the start of August, the MPC increased the rate at 0.25% during each meeting putting the rate at its currently level of 0.75%.

House prices last year surprised experts as the housing market held onto growth despite expectations after the Brexit vote in 2016. This summer there has been a slip in house prices with some calling it a natural correction in some areas including London, while others are fearful of the trend continuing, and others calling it a result of home buyers being distracted from the market.

In July there was a drop in the average house price according to several reports. While London and some other areas saw a decline in their average price, other areas showed continued growth. Some reports showed that while there was a slight decline for the month of July, there was an actual increase over the average house price in comparison to July 2017.

In the months ahead perhaps a trend will develop that will strongly support the reason for reports showing a decline. However, that may not happen as there has been a change in the weather as the UK has for the time being escaped the heatwaves that gripped most of the area at the end of July and into August. Relief from the heat may no longer be the priority, and hopeful home buyers may get back to the task at hand of shopping for property and buying.

Also, since the recent increase by the MPC, home buyers may be encouraged to take action and grasp the opportunity of getting a low interest rate mortgage as some lenders have yet to pass on the increase to borrowers.

Time will tell in the coming weeks how home buyers have responded to the coming of the end of summer as well as higher interest rates on the horizon from lenders. Homeowners are fully expected to take advantage of any low interest remortgage deals available, which should keep the lending market busy.