British House Prices Experience Significant Decline, According to Halifax Data
House prices in the UK have experienced their sharpest decline since 2009, with a drop of 4.7% over the 12 months leading up to September, according to data from mortgage lending company Halifax. This decline reflects a broader trend in the housing market, which has slowed following an increase in interest rates.
This recent data reveals that house prices last month were 4.7% lower than in September 2022, surpassing the 4.5% annual fall observed in August. However, the decline in September was less severe, with prices falling by 0.4% compared to August’s 1.8% slide.
Kim Kinnaird, the director at Halifax Mortgages, has suggested that the Bank of England’s decision to halt its 14 consecutive interest rate increases last month indicates a likelihood of continued high rates. Kinnaird believes this will limit buyer demand and exert downward pressure on house prices into the following year.
Rival lender Nationwide also reported a similar decline in house prices, stating that its measure of house prices in September was 5.3% lower compared to the previous year. This figure matches the decline observed in August, which marked the largest annual drop since 2009. However, prices remained stable when compared on a monthly basis.
Despite the recent decline, it is important to note that the fall in house prices thus far is significantly less severe than the surge observed during the height of the coronavirus pandemic, which continued into last year.
Halifax’s data also highlights that the average price of homes still remains £39,400 ($47,953.74) above pre-pandemic levels, with the current average price standing at £278,601.
The decline in house prices raises concerns about the stability and sustainability of the housing market in the UK. The drop may impact homeowners’ overall wealth and could have wider implications for the economy, such as affecting consumer spending and construction activity. However, it is essential to approach the topic with a balanced perspective and consider the broader economic factors at play.
As the Bank of England maintains its high interest rates and buyer demand potentially decreases, it will be interesting to observe how the housing market evolves in the coming months.
More detail via ETRealty.com here… ( Image via ETRealty.com )