UK house prices fall for first time in 13 months, Halifax says
Reuters
Published Aug 05, 2022 02:11AM ET
Updated Aug 05, 2022 02:37AM ET
LONDON (Reuters) -House prices in Britain fell the first time in more than a year in July in monthly terms and the market is likely to weaken further as interest rates go up and the cost-of-living squeeze tightens, mortgage lender Halifax said on Friday.
Prices, which recently hit record highs, edged down by 0.1% from June when they had risen by 1.4%, Halifax said.
In annual terms, prices rose by 11.8%, slower than a 12.5% increase in June.
The weakening of the house market comes after a boom triggered by the COVID-19 pandemic and the switch to working from home which pumped up demand for bigger homes, and by rock-bottom borrowing costs which are now rising again.
"House prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold," Russell Galley, Halifax managing director, said.
"Therefore a slowing of annual house price inflation still seems the most likely scenario."
Rival mortgage lender Nationwide said earlier this week that house prices rose in July at the slowest monthly pace in a year and Bank of England data has shown the lowest level of new mortgage approvals in two years in June.
The BoE raised interest rates on Thursday by the most since 1995 taking the Bank Rate to its highest level since 2008 as it seeks to limit the damage from a surge in inflation which is now expected to surpass 13% later this year.
Halifax said London continued to record slower annual house price inflation than other regions in July but the 7.9% growth rate was the highest in almost five years.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.