eToro comments on the publication of the ONS House Price Index

Sam North, Personal Finance expert at eToro, comments on the publication of the latest ONS House Price Index covering June.

“UK house prices remained resilient in June, albeit with slowing growth indicating that the market was beginning to cool.

“There is typically a lag effect with interest rate rises and I expect that the ONS figures in the months to come will show a more pronounced slowdown in the market, as we’ve seen from other more up-to-date house price measures from the likes of Rightmove.

“We are now many months into a cost of living crisis and as we head into autumn, millions of homeowners will be remortgaging onto higher rate deals, grappling with energy bills which have more than doubled and facing down eye-watering price increases on petrol and other essentials.

“This will undoubtedly have a severe negative knock-on effect on affordability and buying appetite, which will apply significant downward pressure on house prices.

“The housing market has defied expectations many times before, but we haven’t witnessed an affordability crunch like this in a generation.”

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