The latest figures from the Office for National Statistics (ONS) below show inflation falling from 7.9% in June to 6.8% in July. With inflation heading in the right direction, Swap Rates stabilised and lenders continuing to apply rate reductions to their products we may be turning the corner but should not be complacent given there is a long way to go if the Bank of England (BoE) are to reach their inflationary target of 2% .
While wages grew at a record pace in the three months to June this may put pressure on the BoE to keep the base rate (currently 5.25%) higher for longer.
The monthly change in house prices shows an increase of 0.7%and 1.7% for annually across the UK with the average UK house price now £287,546 which is £5,000 higher than 12 months ago. The regional monthly price changes are shown in the chart below with Yorkshire and the North East showing the highest monthly growth.
