House Prices Rise in Milton Keynes: What the Latest Rate Cut Means for Homebuyers

In a surprising turn of events, the housing market in Milton Keynes and across the UK has experienced a boost.

According to the latest figures from Halifax, house prices have seen a modest increase, signalling a potentlal shift in the market.

Halifax, one of the UK’s leading mortgage lenders, reported a 0.2% rise in house prices in July 2024. This marks a change from the stagnant or declining prices seen in recent months. The average house price in the UK now stands at £262,954, up from £261,932 in June.

Kim Kinnaird, Director at Halifax Mortgages, commented, "The rate cut appears to have instilled a degree of optimism in the housing market, with buyers feeling encouraged by the prospect of lower borrowing costs."

“Our expectation remains that the overall downward trend in house prices will continue, driven by the impact of higher interest rates and cost-of-living pressures on household budgets,” she continued, “But while borrowing costs are much higher than a year ago, the data shows some tentative signs of stabilisation in mortgage rates, which will be welcome news for homebuyers.”

According to Zoopla, the average sold price for a property in Milton Keynes over the last 12 months is £335,036. Different property types in Milton Keynes have the following average sold prices:

Detached Houses: £482,429
Semi-detached Houses: £321,174
Terraced Houses: £273,205
Flats: £167,225

These figures highlight the diversity in the Milton Keynes property market, offering a range of options for buyers depending on their preferences and budget.

One estate agent told The Point, "We've noticed a renewed sense of urgency among buyers. The rate cut with some deals now below 4% has made mortgages more affordable, and people are eager to take advantage of this window of opportunity."

Russell Galley, Managing Director of Halifax, added his insights, “This month’s modest increase in house prices continues to suggest a degree of stabilisation in the housing market at the national level, although we still expect to see some further downward pressure on house prices over the course of this year.”

While the recent rise in house prices is a positive sign, experts caution that the market remains sensitive to broader economic conditions. Inflation rates, employment figures, and future decisions by the Bank of England will all play a role in shaping the housing market's trajectory in the coming months.

Kim Kinnaird added, "It's essential for both buyers and sellers to stay informed and adaptable. While the current outlook is promising, the housing market can change rapidly."

Russell Galley also noted the significance of broader economic influences, stating, “As expected, the housing market remains sensitive to changes in interest rates, with further fluctuations likely as we move through the year. Borrowers must consider their options carefully and remain vigilant as they navigate these challenging conditions.”