UK House Prices Post Sharpest Monthly Fall Since 2023
Lloyds reported a 0.6% monthly decline in October, while London recorded the steepest annual drop among the regions cited.
Key takeaways
- UK house prices fell 0.6% in October, the fourth consecutive monthly decline.
- Prices were down 1.2% from a year earlier, with London falling 3.1%.
- The Bank of England raised its base rate to 4% a day before the figures.
UK house prices fell 0.6% in October, the steepest monthly drop in more than three years, according to Lloyds’ house price index. The average price was £296,285, and the decline marked a fourth consecutive monthly fall.
Prices were down 1.2% from a year earlier, the biggest annual decline since October 2023. Analysts had expected a 0.1% monthly increase, which would have ended the run of declines.
Borrowing costs remain high for buyers. Moneyfacts’ latest update put the average two-year fixed mortgage rate at 5.97% and the five-year rate at 5.99%. A day before the figures, the Bank of England raised its base rate by a quarter point to 4%.
London had the largest annual fall among the regions highlighted, with prices down 3.1% to £524,892. The south-east and south-west of England each recorded declines of 2.4%, while figures reported by Dünya showed prices up 4.4% in Northern Ireland and 2.8% in Scotland.
Lloyds mortgages director Andrew Asaam said renewed inflationary pressures, partly linked to the conflict in the Middle East, were keeping borrowing costs high and making some buyers more cautious. Rightmove also reported that buyer demand had fallen 10% and agreed sales were down 9% amid high mortgage rates.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
