House prices propped up by last year’s mini-budget

House prices increased by 0.2% annually, reflecting how we’re one year on from Liz Truss and Kwasi Kwarteng’s economically incompetent mini-budget.

This puts a positive spin on the market despite prices dropping by 0.7% between July and August.

Sarah Coles, head of personal finance, Hargreaves Lansdown, predicted that prices could still plateau and drop towards the end of the year.

She said: “The annual figures are going to look better over the coming months, reflecting the fact that we’re a year on from the mini budget. It had a dramatic impact on house prices, as the cost of mortgages soared, and house prices went from a peak of £291,909 in September – the month of the announcement – to a trough of £282,115 in March.

“It means that this September’s annual growth figure could look a bit wobbly, but from that point, annual price rises will be looking back to that period of lower prices, so they may look increasingly healthy.

“A clearer picture will emerge in the monthly data. Since March, house prices have continued to rise on a monthly basis, but have slowed between July and August.

“Given the fact that the Bank of England figures show fewer mortgages approved during the month, RICS shows buyer demand falling and HMRC recorded fewer transactions, we could see this slow further and prices start to plateau again, or even drop.”