House prices in north and west Cumbria have dropped slightly earlier this year.
That’s according to figures from the Office for National Statistics, showing the average house price in the Cumberland Council area in the year to September 2024 was £176,121 – a 0.9 per cent decrease on August.
The picture was different to that across the Northwest, where prices increased by 0.4 per cent.
The drop in the area does not reverse the longer-term trend which has seen property prices in the area grow by 7.4 per cent over the last year.
It means the area ranked fourth among the Northwest’s 35 local authority areas for annual growth, with the average price in the Cumberland Council area rising by £12,000 over the past year.
The highest annual growth in the Northwest was in Blackburn with Darwen, where property prices increased on average by 9.6 per cent.
At the other end of the scale, properties in Manchester lost 1.4 per cent of their value.
Across the UK, average house prices in September fell slightly on the month before but have accelerated by 2.9 per cent over the past year.
Separate figures from the ONS show the Consumer Prices Index (CPI) inflation jumped to 2.3 per cent in October, up from 1.7 per cent the previous month.
David Hollingworth, associate director at mortgage broker L&C Mortgages, said the jump in inflation could ‘bring further headaches for mortgage borrowers’.
He said inflation lifting above the Bank of England's 2% target is "not a shock", but added it is higher than many had expected.
He said fixed-rate mortgages have climbed in recent weeks, adding: "Those increases are due to the less optimistic forecast for interest rates and today's figures will do nothing to change that.
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"Although still expected to fall, the growing expectation has been for rates to fall more slowly and not as far as previously anticipated."
Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, a London-based investment and financial coaching company, said: "Homeowners and first-time buyers are likely to be disheartened by the latest inflation reading, as it reduces the likelihood of a third rate cut this year.
"The average cost of a new fixed-rate mortgage has been creeping up since the Budget, as lenders price their products to reflect expectations that interest rates may stay higher for longer."
She added the rise in inflation means mortgage borrowers could have ‘more pain to contend with’ if more lenders adjust their rates upwards.
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