Average UK house prices have surged past £300,000 for the first time, according to Halifax, the UK's largest mortgage lender. This milestone, reached in January, could present challenges for first-time buyers, although wage growth and potential interest rate cuts offer some relief. Simultaneously, Bitcoin prices have plummeted to their lowest point in 16 months, reflecting market volatility.
The average UK property price rose to £300,077 in January, Halifax reported. This increase was described as a "milestone" by the lender, potentially making homeownership more difficult for those entering the market. However, Halifax noted that wage growth has outpaced house price inflation since 2022, which may improve affordability. Furthermore, lenders have been introducing products with smaller deposit requirements to attract first-time buyers. The Bank of England hinted at potential interest rate cuts this year, which could further lower mortgage rates.
In other financial news, Bitcoin prices have fallen to their lowest level in 16 months, reaching levels last seen in September 2024, according to multiple news sources. This downturn occurred despite support from former President Trump. The digital currency is now down 32% in the last year, reflecting market volatility and a decrease in UK crypto investors.
In unrelated news, British police were searching two properties linked to former ambassador to Washington Peter Mandelson as they investigated allegations of misconduct in public office. The investigation is related to Mandelson's links to the late financier Jeffrey Epstein.
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