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UK house prices fell 2.3 per cent in November – the biggest monthly fall since 2008, according to Halifax.
The bank also said it saw the annual rate of house price growth fall to 4.7 percent, down from 8.2 percent in October. Meanwhile, the average UK house price was £285,579 in November
Halifax Mortgages director Kim Kinyard said: “The monthly decline of 2.3 per cent is the biggest since October 2008 and the third consecutive fall.”
Mortgage rates rose after September’s mini-budget on Lease Truss and Quasi Kwarteng, with the Bank of England raising its base rate, as well as rising borrowing costs, with households being squeezed by rising bills in general.
Ms Kinnarid continued: “While the market slowdown was expected due to known economic headwinds – and following such massive house price inflation over the past few years (up 19 per cent since March 2020) – this month’s decline reflects the worst market volatility in recent months.
“Some potential home moves have been put on hold as homebuyers feel increased pressure on affordability and industry data suggests many buyers and sellers are stockpiling as the market stabilizes.”
“When thinking about the future of house prices, it’s important to keep in mind the context of the last few years, when we witnessed some of the biggest house price increases in the market.
Property prices have now risen by more than £12,000 compared to last year, he explained. Prices are also sitting above pre-pandemic levels, up by £46,403 compared to March 2020.
“The market is now going through a normalization process. While some important factors will remain, such as the limited supply of properties for sale, the trajectory of mortgage rates, the resilience of household finances in the face of rising costs of living, and how the economy – and more specifically the labor market – will perform. Changes in house prices in 2023 should be important in determining
Halifax said Wales and the south-west of England recorded a particularly sharp slowdown in annual house price growth.
Both have been key hotspots for home price inflation during the coronavirus pandemic, suggesting that previous drivers of the market such as the “race for space” and high demand for rural living are now waning, Halifax said.
The pace of annual property price inflation has also slowed in London, lagging behind other UK regions and countries.
Average property prices in London are much higher than the UK average.