A typical home is now approximately £7,000 cheaper.
According to Halifax’s house price index, property prices in the United Kingdom fell at the quickest rate since 2008’s financial crisis.
From October to November of this year, prices fell 2.3%, the highest monthly decline since October 2008, according to the UK’s largest mortgage provider.
The average cost of a home in the United Kingdom fell from £292,406 to £285,579, a decrease of over £7,000.
In November, yearly house price growth fell from 8.2% in October to 4.7% due to this monthly decline.
The economic effects of September’s mini-budget continued to influence consumer behavior.
“Potential home movements have been put on hold as homebuyers face heightened affordability pressure,” said Kim Kinnaird, director of Halifax mortgages. According to industry data, many buyers and sellers are taking stock as the market continues to stabilize.
As a result of the market turbulence induced by Kwasi Kwarteng’s declaration of billions of pounds of debt-funded tax cuts and massive spending, mortgages became more costly.
While a slowdown was anticipated “given the recognized economic challenges and after such substantial house price inflation over the past few years,” this current revelation reflects the “worst of market volatility over the past few months,” according to Russell Galley, managing director of Halifax.
Ms. Kinnaird stated that the increase in real estate prices must be considered with the recent price decline. In the past several years, “the market has witnessed some of the largest property price hikes ever,” she said.
She said that the market may be normalizing as prices are £46,403 more expensive than in March 2020, before the pandemic, and £12,000 higher than last year.
“The market may now be experiencing a period of normalization. In 2023, the direction of mortgage rates, the resiliency of household finances in the face of rising costs of living, and the performance of the economy – and notably the labor market – will be crucial in deciding changes in house values.”
Northeast England was the only region where growth did not slow in November. There, annual growth increased a little from 10.4% to 10.5%. It is also the only region in the United Kingdom with double-digit yearly house price inflation, with an average property price of £173,587.
