Interest rates and house prices are stable for now

By Enzo Mora, CEO and founder of The Mortgage Brain

The silly season may have started, but interest rates and house prices are stable for now. Interest rates were held last month at 3.75%, as widely predicted. I believe this could be the last hold this year, if the Middle East conflict continues to be unresolved, with the knock-on effect of rising fuel prices, which will contribute to higher inflation.

While this isn’t great news for borrowers, lenders are acutely aware of the need to remain competitive. We’ll see rates going up and adjusting back down, so we’re still encouraging our customers to lock into today’s rates, with a chance to switch to a better deal if one appears later.

For now, the new prime minister has ruled out the radical idea of scrapping Stamp Duty in the autumn Budget. This helpfully kills the ‘will they, won’t they?’ instability effect on the property market that we’ve seen in previous years.

How long do we stay in our homes?

The Nationwide reports that UK house price growth edged down to 1.8% in July, from 2.2% the previous month. Prices remained broadly flat, up 0.1% month on month.

The lender also looked at the latest data from the English Housing Survey, which revealed the average time living in a home, either owned or rented, is around 14 years. However, those who own their home outright tend to have lived in their current home for around 24 years on average.

What’s interesting is that, while nearly 200,000 households previously in the private rented sector became owner occupiers in 2024/25, there was a return flow, with around 100,000 households moving into private rented properties, having previously been owner occupiers.

Borrowers vote for mortgage brokers

Santander’s latest Broker Perception Barometer shows that, in an uncertain mortgage market, broker support remains indispensable, with almost two-thirds (60%) of borrowers claiming they couldn’t go through the homebuying or remortgage process alone.

At a time when interest rates remain uncertain, brokers instil a sense of security among future and current homeowners (84%). Nearly three-quarters of respondents (73%) say that having a mortgage broker gives them greater confidence in their financial decisions, highlighting the reassurance and expertise brokers provide during the homebuying process.

Most borrowers (79%) continue to save money as a direct result of working with a broker, with their average monthly payments being reduced by £136, which is great news.

Busiest moving day this month

An estimated 22,904 households, around four times the daily average, are expected to be moving on Friday, August 28, according to Really Moving and the HomeOwners Alliance.

August has been the most popular month to move home for the past 14 years, with January and February consistently the quietest. However, Friday is the most popular day of the week, with 26% of moves on this day and only 5% on a Sunday.

In my experience, a mid-week move may be less convenient but could save you a few pennies, so it’s always worth asking the question when getting a quote.

Summer of sun

I referred to the ‘silly season’ at the start of this article, which is traditionally during August, when news is slow and light-hearted stories make the headlines. With the summer we’re having, it’s amusing to see that we Brits are still searching for a place in the sun.

Rightmove has revealed the most popular overseas search destinations this summer, with Portugal’s Algarve topping the list, followed by Paphos in Cyprus and Mallorca in Spain. Spain remains the overall most searched for country, followed by France and Italy.

Hands up those enjoying a bit of sun and sangria in the back garden!