UK house price falls spread; Wilko falls into administration; US inflation rises to 3.2% – as it happened

RICS house price balance drops again ... as more mortgage holders fall into arrears and Wilko takes difficult decision' to enter administration

• Wilko shoppers: tell us what you like most about the store
• Full story: Wilko collapses into administration after rescue talks fail

And here's Victoria Scholar, head of investment at interactive investor, on the Rics housing report....and the drop in mortgage rates by some lenders this week:

The Royal Institution of Chartered Surveyors (RICS) house price balance, which measures the percentage of surveyors reporting house price increases versus declines, fell to -53 in July from -48 in June, reaching the lowest level since April 2009 during the global financial crisis. Property sales fell at the fastest rate since April 2022 while rents jumped the most since 1999.

This data echoes recent reports from Nationwide and Halifax suggesting that the Bank of England's aggressive stream of 14 consecutive rate hikes and the consequent surge in mortgage costs are sharply weighing on the housing market. The reduction in affordability of borrowing is prompting more and more would be buyers to turn to the rental market instead with increased demand leading to a jump in rents. Plus, landlords are dealing with increased costs because of inflation, which they are also passing on to their tenants.