£100 warning issued to anybody in the UK who rents a flat or home

Average property prices increase by 2.2 per cent last month to £290,000 while the average rent for private renters hit £1,286 per month.

House prices are still rising but the pace of growth is cooling, the Office for National Statistics data has shown. Average property prices increase by 2.2 per cent last month to £290,000 while the average rent for private renters hit £1,286 per month.

It means the typical home has added £8,000 of value since January 2024, and now sits £5,000 off the record high recorded in June 2022.

Andrew Montlake, managing director of Coreco, told Newspage: "It wasn't so long ago that some were declaring double-digit price falls for the residential property market. That simply hasn't happened and was never going to happen.

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"Prices have held their own and, with mortgage rates continuing to drop, increased demand is likely to send prices higher in the closing stages of 2024. Yes, there are potential road bumps ahead, not least the Autumn Budget, but another base rate cut before the year is out is possible, although it is unlikely to come this week following inflation staying at its current level.

"Falling mortgage rates are definitely driving demand on the ground." In August, the average private rent was £1,286 per month - £100 or 8.4 per cent more than the previous year. The ONS said average rents increased to £1,327 (8.5 per cent) in England, £752 (8.5 per cent) in Wales, and £969 (7.6 per cent) in Scotland.

Richard Harrison, head of mortgages at Atom Bank, said: "There is clear momentum building in the housing market currently. The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold.

"Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers."

David Hollingworth, associate director at L&C Mortgages, said: "The level of competition between lenders remains intense and they've continued to reprice regularly to try and keep up with peers." Nick Leeming, chairman of Jackson-Stops, said: "Buyers' confidence will always, to varying extents, be influenced by the wider economic picture. It is essential the Government introduces polices to address the supply and demand imbalance, but at a rational rate.

"The market needs consistency and certainty, not knee-jerk reactions and short-term solutions."