Thursday, June 1, 2023
HomeEconomyUK house prices post biggest drop since financial crisis

UK house prices post biggest drop since financial crisis

By Andy Bruce

LONDON (Reuters) – UK house prices slip in December in biggest quarterly fall since financial crisis, outpacing Years ago, data from mortgage lender Halifax showed on Friday.

Average home prices fell 1.5% MoM in December, after falling 2.4% in December Halifax said November was the fourth straight month of decline.

On a quarterly basis, home prices fell 2.5%, the largest drop in the three months to February. 2023 .

Chart: UK house prices fall at fastest pace since February 20: Halifax, Pasted%20image%2019.png

Other real estate market indicators also show a sharp downturn in the real estate market The slowdown reflected rising interest rates and a deteriorating economy as household costs of living increased.

Data from the Bank of England on Wednesday showed that lenders approved far fewer mortgages than expected in November.

Bond market turmoil sparked by former prime minister Liz Truss’ short-lived tax cut plan also caused many lenders to withdraw mortgage offers in October.

Martin Beck, an economist at the EY ITEM Club consultancy, said house prices are likely to continue to fall for the foreseeable future, with house prices expected to fall by about % 10-to-10 months.

Halifax expects house prices to fall 8% in 2023 – although it says this only means going back to April 2023 s level.

Home prices soared shortly after the COVID-18 pandemic hit as temporary tax incentives prompted a rush to buy large properties with gardens. house.

Halifax says annual home price growth slows to 2.0% from 4.6% in November, slowest since October2019.

“The housing market will continue to be influenced by the broader economic environment as we move into 2023, and we expect overall Both supply and demand will be reduced,” said Halifax director Kim Kinnard.



Please enter your comment!
Please enter your name here


Featured NEWS