We Buy UK Houses

House prices fall at fastest annual rate in 12 years

By James King

House prices fell at the fastest annual rate seen in 12 years in June, according to an index.

Halifax said the annual fall of 2.6%, equating to around £7,500 being wiped off the average UK house price in cash terms, was the biggest since 2011.

On a month-on-month basis, property values dipped for the third month in a row, with an average decline of 0.1% in June.

Kim Kinnaird, director, Halifax Mortgages, said: “The average UK house price fell slightly in June, down by around £300 compared to May, with a typical property now costing £285,932.

“This was the third consecutive monthly fall, albeit a modest one.

“The annual drop of 2.6% is the largest year-on-year decrease since June 2011.

“With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer – annual growth peaked at 12.5% in June 2022 – supported by the temporary stamp duty cut.

“To some extent the annual growth figure also masks the fluctuations we’ve seen in the market over the past 12 months.

“Average house prices are actually up by 1.5% (around £4,000) so far this year, with most of that growth coming in the first quarter, following the sharp fall in prices we saw at the end of last year in the aftermath of the mini-budget.

“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of mortgage applications held up well throughout June, particularly from first-time buyers.

“That said, the housing market remains sensitive to volatility in borrowing costs.”

The average two and five-year fixed-rate mortgages on the market have recently topped 6%, according to Moneyfactscompare.co.uk.

John Choong, market and equity analyst at InvestingReviews.co.uk: “With the average fixed mortgage rate now firmly above 6%, the housing market should brace for an onslaught. This is especially the case in the South of England, which is under the most pressure.”

Average house prices across UK, with annual increase or decrease

This breakdown is based on the most recent three months of approved mortgage transaction data, according to Halifax.

– East Midlands, £333,343, minus 2.1%

– Eastern England, £238,755, minus 1.1%

– London, £533,057, minus 2.6%

– North East, £186,856, 0.2%

– North West, £168,240, minus 0.9%

– Northern Ireland, £223,493, minus 0.4%

– Scotland, £201,774, minus 0.1%

– South East, £384,106, minus 3.0%

– South West, £301,248, minus 2.1%

– Wales, £215,183, minus 1.8%

– West Midlands, £251,139, 1.5%

– Yorkshire and the Humber, £203,674, 0.2%

Content retrieved from: https://www.upday.com/uk/house-prices-fall-at-fastest-annual-rate-in-12-years-check-areas-with-biggest-drop.

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