UK house prices show steepest decline since Feb 2021

Halifax has revealed that average house prices in the UK slid 0.4% between September and October, the sharpest drop in 20 months, as a surge in borrowing costs hit the property market. Annual house price growth slowed to 8.3% in October, from 9.8% growth recorded in September. Across the UK, the average house price in October was £292,598, which was the lowest figure since May this year, although typical prices remained near record highs. In London, the average price grew 6.8% to £551,320. Kim Kinnaird, director of mortgages at Halifax, said: "While a post-pandemic slowdown was expected, there's no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases." Kinnaird believes it likely that house prices will rise to new records over the longer term, particularly given the well-documented shortage of homes for sale. However, she added: "With tax rises and spending cuts expected in the autumn statement, economic headwinds point to a much slower period for house prices."  

Financial Times (07/11/2022)   The Daily Telegraph (07/11/2022)   The Guardian (07/11/2022)   The Independent (07/11/2022)