Halifax reveals a 1.6% year-on-year rise in UK house prices, with regional variations noted. The market faces challenges from higher mortgage rates and a shortage of properties. Meanwhile, Bitcoin struggles post-halving event with analysts eyeing a potential ‘Trump trade’ for a price rally.
According to Halifax, UK house prices increased by 1.6% year-on-year in June 2023, with the average house now valued at £288,455. Monthly figures showed a slight dip of 0.2%, equating to less than £500. Amanda Bryden, Head of Mortgages at Halifax, attributed this stability to a shortage of available properties rather than strong buyer demand. Bryden noted that higher mortgage rates continue to suppress both prices and market activity.
Regionally, house prices varied. Northern Ireland saw a 4% increase, while the North West of England experienced a 3.8% rise. In Scotland, average house prices went up by 1.6% to £204,663, and in Wales, they grew by 2.7% to £220,197. Conversely, Eastern England saw a 0.9% decrease, with average home prices at £328,747.
Looking ahead, the Labour Party, recently winning a majority, announced plans to build 1.5 million new homes and implement policies aimed at keeping mortgage rates low. However, experts suggest that the future of interest rates will have a more significant impact on house prices than these policies.
In the cryptocurrency market, Bitcoin has struggled since its peak in mid-March 2023. Despite predictions, the cryptocurrency has dropped about 15% since April’s halving event, recently falling below $54,000. Analysts from Ryze Labs cited potential sales from authorities and defunct exchange Mt Gox as key reasons for the sluggish performance.
Looking for an upswing, some traders are speculating on a potential “Trump trade” — a rally in Bitcoin prices if Donald Trump wins the US presidential election in November. Industry figures believe Trump is more pro-crypto, offering policies favorable to the sector. Analysts also suggested that Trump’s policies could create economic conditions that would make Bitcoin more attractive as an investment.
Overall, current market dynamics pose challenges and opportunities across different sectors, influenced by varying regional performances, economic policies, and global events.
