UK house prices are falling at fastest pace since 2009 on annual basis, reports Halifax
Bank of England governor expects ‘quite marked’ fall in UK inflation
Looking back through the data, the 4.6% drop in prices in August is the biggest annual decline since October 2009.
2009 was a rough year for the housing market, following the collapse of Lehman Brothers the previous autumn.
“House prices are thankfully adjusting to more sensible levels alongside increases to people’s earnings and the number of properties selling below asking price is increasing, offering homebuyers the opportunity to negotiate. These factors are all playing a part in increasing homebuyers’ affordability and softening the blow of rising interest rates.
“However, despite how this may look on the face of things, sellers are rightly still motivated to sell as they continue to make a healthy gain on their property price.”
“With higher interest rates impacting on UK households, property buyers are adopting a more strategic and flexible property search by adjusting their budget or widening their search criteria to find a suitable home.
Although some buyers took a break during the August holidays, others utilised last month to enter price negotiations or seal the deal by signing contracts.”
