UK house prices flatlined in September, with the average cost of a home recorded at £298,441. This figure, according to the Lloyds tracker, is roughly the same as it was in August and a year earlier.
The stagnation in prices comes as rising mortgage costs have started to affect the market. Economists polled by Reuters had anticipated a modest monthly and annual increase in prices.
Mortgage applications for home purchases decreased by 18.2% in the third quarter compared to the same period last year, according to Stonebridge. Applications from first-time buyers saw an 18.6% slump over the same timeframe. However, an increase in remortgaging applications helped to mitigate the overall decline in mortgage activity.
Andrew Asaam, mortgages director at Lloyds, noted that while the market has been subdued, property prices have shown resilience during a period of higher mortgage rates. He added that new inquiries from prospective buyers are currently at their highest since February.
The average cost of a five-year fixed-rate mortgage reached 6% on Monday, marking the first time it has done so in three years. This rise in rates follows turmoil in global bond markets, despite no change in the Bank of England base rate since December last year.