House values fall fastest since 2008 meltdown

• UK house prices fell at the quickest rate since 2008.
• The UK’s largest mortgage lender stated prices declined 2.3% from October to November.
• The average UK house price fell from £292,406 to £285,579.

Halifax’s house price index shows UK house prices fell at the quickest rate since 2008.

The UK’s largest mortgage lender stated prices declined 2.3% from October to November, the most since October 2008.

The average UK house price fell from £292,406 to £285,579.

In November, the yearly house price increase decreased from 8.2% in October to 4.7%.

The mini-economic budget’s impact on purchases continues.

“Some planned property moves have been halted as homebuyers face heightened affordability strain,” said Halifax mortgages director Kim Kinnaird.

Interest rates rose when Kwasi Kwarteng announced billions of pounds in debt-funded tax cuts and investment, raising mortgage costs.

While a slowdown was expected “given the recognized economic challenges and after such substantial property price inflation in recent years,” this current report represents the “worst of the market instability in recent months,” said Halifax managing director Russell Galley.

Ms. Kinnaird said the recent price drop should be weighed against rising property costs. “We’ve seen some of the highest housing price hikes ever,” she remarked.

Prices are £46,403 higher than pre-pandemic March 2020 and £12,000 higher than last year, she said.

“Markets may be normalizing. The trajectory of mortgage rates, the robustness of household finances in the face of growing costs of living, and how the economy – notably the employment market – performs will determine house price changes in 2023.”

Only northeast England grew in November. Annual growth grew to 10.5% from 10.4%. It’s the only region in the UK with double-digit annual house price inflation, at £173,587.

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