House prices rise at fastest pace since 2004

The average price of a UK home rose by 10.9% in the year to May, the highest annual growth rate since August 2004, according to the latest data from Nationwide. The building society said the increase was driven by strong demand from buyers seeking more space after the pandemic, as well as the extension of the stamp duty holiday. The average price of a UK home now stands at £242,832, up by £23,930 over the past 12 months.

Renters face affordability crisis as rents soar

Renters in the UK are facing an affordability crisis as rents have soared by 6.2% in the year to April, the highest annual increase since 2014, according to the latest data from Zoopla. The property portal said the surge in rents was due to a mismatch between supply and demand, as many landlords have sold their properties or moved into them during the pandemic, while more tenants have sought larger and more comfortable homes. The average monthly rent in the UK is now £997, up by £58 from a year ago.

Mortgage rates fall to record lows as lenders compete

Mortgage rates in the UK have fallen to record lows as lenders compete to attract borrowers who are looking to move or remortgage. According to the latest data from Moneyfacts, the average two-year fixed rate mortgage is now 1.95%, down from 2.43% a year ago, while the average five-year fixed rate mortgage is now 2.25%, down from 2.74% a year ago. The financial information service said the drop in rates was partly due to the Bank of England’s base rate being at 0.1%, as well as the availability of cheap funding from the government’s Term Funding Scheme.