UK house prices fell for the fourth month running in July, according to data from the Halifax. The average house price fell by 0.3% month-on-month, to £286,079. This is the lowest level since March 2022.
The fall in house prices is being driven by a number of factors, including rising interest rates, the cost of living crisis, and a slowdown in economic growth. The Bank of England has raised interest rates five times since December in an effort to combat inflation. This has made it more expensive for people to borrow money, which has dampened demand for housing.
The cost of living crisis is also putting pressure on household budgets, making it more difficult for people to save for a deposit. Additionally, the UK economy is growing at its slowest pace in a year, which is also likely to weigh on house prices.
Despite the recent falls, house prices are still significantly higher than they were a year ago. The average house price is up 9.7% over the past year. However, the rate of growth is slowing, and it is expected that house prices will continue to fall in the coming months.
The fall in house prices is good news for first-time buyers, who are now able to get on the property ladder more easily. However, it is bad news for homeowners who are looking to sell their homes. They may have to accept a lower price than they were hoping for.
The outlook for the UK housing market is uncertain. The Bank of England has said that it expects interest rates to rise further, which could put more downward pressure on house prices. However, the government has also announced a number of measures to help people with the cost of living, which could support the housing market.
Overall, the UK housing market is likely to remain volatile in the coming months. It is important for buyers and sellers to be aware of the risks and opportunities before making any decisions.
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