In September, UK house prices experienced the sharpest annual decline in 14 years, as high mortgage costs continued to contribute to a buyer’s market, according to Halifax.
Halifax, the largest mortgage lender in Britain, reported a 4.7% drop in prices compared to September of the previous year, marking the biggest year-on-year decrease since 2009.
The average price of a typical UK home is now £278,601, down from £292,197 in the same month last year. Halifax predicts that higher mortgage costs will continue to impact prices throughout the coming year.
House prices declined by 0.4% on a monthly basis in September, marking the sixth consecutive decline, although this drop was smaller than the 1.8% decline in August.
“Compared to recent years, activity levels in the housing market remain subdued,” said Kim Kinnaird, the director of Halifax Mortgages. “Borrowing costs, driven by higher interest rates, are the primary contributing factor. Homeowners are becoming more realistic about their target selling price, reflecting the increasingly prevalent buyer’s market.”
Figures released last month revealed that UK mortgage approvals reached a six-month low in August as high interest rates cooled the housing market.
According to the Bank of England, net mortgage approvals for house purchases decreased from 49,500 in July to 45,400 in August, representing a 33% drop compared to the same period last year.
Last month, the Bank of England decided to keep interest rates unchanged for the first time in nearly two years, suggesting that borrowing costs may have reached their peak as lenders began to reduce rates on mortgage deals.
“With the base rate likely to remain at or near its peak, fixed-rate mortgage deals are starting to decrease from their recent highs,” Kinnaird explained.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
