House prices drop for first time since 2012

House prices have dropped 1% year-on-year, the first such drop since 2012, according to the latest Halifax House Price Index. The cost of a typical UK property is now £286,532, down from £286,662 in April, while property prices have fallen by about £3,000 over the last 12 months and by around £7,500 since the peak in August. Kim Kinnaird, the director at Halifax Mortgages, said: "As expected, the brief upturn we saw in the housing market in the first quarter of this year has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed-rate mortgage deals coming to an end." She added: "This will inevitably impact confidence in the housing market as buyers and sellers adjust their expectations." 

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