Home News Slight Drop in U.K. Home Prices Marks Start of Slowdown

Slight Drop in U.K. Home Prices Marks Start of Slowdown

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The long-anticipated slowdown in UK house prices has begun.

Average UK home prices fell 0.1% month-on-month to £293,221 ($354,453) in July, the first decline since June 2021, British bank and mortgage provider Halifax said on Friday. According to a report published in

Prices are 11.8% higher than at this time last year, according to Halifax managing director Russell Galley.

“You shouldn’t read too much in any month, especially since the decline is only a fraction, but a slowdown in annual house price growth has been expected for some time.” , indicating a softening of activity, and rising borrowing costs are adding to the pressure on household budgets against the backdrop of a very high house price-income ratio.”

However, inflation, economic concerns, rising interest rates, etc. The Bank of England rose to 1.75% from 1.25% on Thursday.It’s the biggest rate hike since 1995 and slows growth.

“Not really [the] Interest rates have risen sharply, but the outlook for inflation and higher interest rates is starting to slow home price growth.”

Jeremy Leaf, London agent and former Residential Chairman of the Royal Institute of Chartered Surveyors (RICS). “But with unmet demand, very high rents and very strong employment, we cannot expect a major correction yet.”

Data show that large homes continue to outpace small homes in terms of price appreciation. Average single-family home prices rose 15.1% year-on-year to £60,860 in July, while apartment prices rose 7.7% (£11,962).

Regionally, Wales saw the biggest price gains last month, with an annual increase of 14.7%, with an average property price of £222,639. This was followed by a 14.3% increase in prices in South West England to £310,846 and a 14% increase in Northern Ireland to £187,102.

Average prices rose 7.9% in London, the highest in nearly five years. The average property price was £551,777.

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