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UK House-Price Growth Cools to 2.6% as ONS Signals Softer Rental Inflation

Cooling inflation has prompted lenders to trim fixed mortgage rates.

Overview

  • ONS data show annual house-price growth eased to 2.6% in the year to September, with the average UK home valued around £272,000.
  • Regional divergence persisted, with Yorkshire and the Humber up 4.5% while London recorded a 1.8% annual fall.
  • Average private rent reached £1,360 in October, up 5.0% year on year, as rental inflation eased for a tenth consecutive month.
  • CPI inflation slowed to 3.6% in October from 3.8% in September, and commentators say this could bring a Bank of England rate cut closer.
  • Industry figures report successive fixed-rate mortgage cuts as lenders pass on improved funding costs, a shift that may aid first-time buyers but temper equity gains for sellers.