What's going on?

Data out on Thursday showed UK house prices climbed again last month, but there are some signs of a slowdown.

What does this mean?

The cost of living is putting Brits off even the smallest of purchases, so mix in unattractive spiraling mortgage rates and it�s no wonder that UK house prices have� risen. Yup, risen: a lack of supply is almost single-handedly propping up the market, with data from the Royal Institution of Chartered Surveyors showing the average estate agent branch covered just 35 properties in July � the lowest since records began. Would-be buyers then had little choice but to outbid rivals for their dream home, which helped push house prices up 10% in August from the year before, overshooting economists� 8.9% prediction. Mind you, that mightn�t be a huge shock: that�s the tenth straight month of double-digit growth, and brings the average house price to a fresh high of �273,751 ($316,000) � a whole �50,000 ($58,000) higher than just two years ago.

Why should I care?

The bigger picture: Every little helps.
Still, that was a slowdown from the previous month�s 11% uptick. And that might continue: Bank of England data out this week showed the number of new mortgages approved sunk below pre-pandemic levels, plus expected rate hikes will only keep hopeful homebuyers firmly off the ladder. And that � along with more anticipated supply this fall � might be why some estate agents expect price rises to slow even more going forward.

For you personally: Mark your calendars.
Oxford Economics went one step further, predicting that UK house prices will actually fall from the middle of next year. Still, that doesn�t mean wannabe buyers will be able to put down deposits: they�ll have to slog through high inflation � which Goldman Sachs believes could hit 22% next year � to get there first, and it�s predicted the best two-year fixed-rate mortgage around will sit at 5.5% by then � almost double what you�ll find today.