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14th rise in UK interest rates

Publish Date: 03 August 2023

By Jade Shrubsole

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14th rise in UK interest rates

Further reading

Buying a property with planning permission at auction can be advantageous

Why is it so important to use EIG to search whether a property has been to auction before

Today, we witnessed the 14th rise in UK interest rates, the highest rate in 15 years, bringing it from 5% to 5.25%. This smaller increase comes amidst signs that persistently high inflation is starting to ease.

Recently, Nationwide reported a significant decline in annual property values by 3.8% in July, making it the sharpest fall since July 2009. According to the building society, the average home is now worth £260,828, which is a decrease of 0.2% compared to the previous month and a 4.5% decline from the peak recorded in August 2022.

In our July newsletter, we observed a notable 20.1% increase in lots offered at auctions. Could this be attributed to landlords still trying to sell off their tenanted properties due to the interest hikes? Or is there another reason driving such a substantial rise in the number of lots?

Keep an eye out for our next Q3 Auction Report, scheduled for release on September 1st, as we delve into these numbers and analyse the situation further. View our previous Q2 report here.

 

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