Rolling coverage of the latest economic and financial news This chart of average UK house prices underlines how the flat the market has been over the last year: Lloyds’s Andrew Asaam adds that it’s important to keep the recent drop in house prices in perspective, explaining: Average house prices remain around 25% higher than they were at the end of 2019, despite the substantial increase to interest rates seen over recent years. The market’s adjustment to higher borrowing costs has been gradual, with wage growth helping to offset some of the pressure on affordability. The recent modest declines in prices are best viewed in that wider context. “We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices. While affordability remains a challenge, wages continue to grow and employment has held up better than many anticipated. This will help to support demand from those who need or want to move.” Continue reading...