London Daily

Focus on the big picture.

Cost of living: House prices drop by 2.3% in a month - Halifax

Cost of living: House prices drop by 2.3% in a month - Halifax

UK house prices saw their biggest drop in 14 years in November, falling 2.3%, reflecting "volatility" in the market, according to mortgage lender Halifax.

November marks the third month in a row during which prices have fallen with potential buyers playing safe by delaying purchases.

The average UK house price in November was £285,579.

Higher mortgage rates, economic uncertainty, and the rising cost of living are all affecting the market.

The annual rate of growth in property prices has now dropped from 8.2% to 4.7%.

Kim Kinnaird, director of Halifax Mortgages, said: "While a market slowdown was expected given the known economic headwinds - and following such extensive house price inflation over the last few years, this month's fall reflects the worst of the market volatility over recent months.

"Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise."

However, she said that the falls should be put into context, given the rapid increase in property prices in the last few years.

Property prices were up more than £12,000 compared with this time last year, and £46,403 higher than in March 2020 when the Covid pandemic began.

The Halifax said Wales and the South West of England had recorded particularly sharp slowdowns in annual house price growth.

Both had been at the forefront of house price inflation during the pandemic, when the so-called race for space among buyers boosted demand for rural or coastal properties.

The Halifax survey, based on the lender's own data, comes shortly after the rival Nationwide Building Society said prices fell 1.4% from October to November - the largest month-on-month fall since June 2020.

Mortgage rates are much higher than at any time during the last decade, although earlier this week, the average rate on a new, fixed-rate two or five-year deal fell below 6% for the first time for two months.

Tomer Aboody, director of property lender MT Finance, said: "With another fall in property prices in November, buyers and sellers are clearly demonstrating more caution due to higher mortgage rates and the ever-rising cost of living.

"As with any fall in pricing, buyer sentiment and confidence is key. But considering the macro-economic and seasonal factors affecting all consumers, along with the month-on-month increases seen over the past 18 months or so, the decline needs to be put into context as it is still minimal."

Related Articles

London Daily
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest
Dutch Military Intel Uncovers Extensive Chinese Cyber Espionage
Turkish Student Arrested for Using AI to Cheat in University Exam
Rise in Dengue and Other Mosquito-Borne Diseases in Europe Due to Climate Change
EU Elections Overview: Far-Right Gains and Major Political Shifts
Far-Right National Rally Dominates France's EU Vote
Macron Calls Snap Legislative Elections After Far-Right Victory
Far-Right Gains Significantly in EU Election
UK Job Market Shows Signs of Recovery
Orban’s Fidesz Party Wins Majority in Hungary’s EU Elections as New Challenger Emerges
Meloni's Far-Right Party Wins European Elections in Italy
Key Insights from the European Union Elections
European Union Elections and Rise of Far-Right Parties
England Loses Over 260,000 Social Rent Homes in a Decade
Campaigners Urge Government to Block Shein's FTSE Listing
First NHS AI-Run Physiotherapy Clinic Launches This Year
British TV Presenter Michael Mosley Found Dead on Greek Island
Ukrainian Forces Claims First Strike on Russia's Su-57 Fighter Jet
Macron Dissolves Parliament and Calls Snap Elections
Russia Adds Yulia Tymoshenko to Wanted List
UK Foreign Secretary David Cameron Tricked by Hoax Caller Posing as Former Ukrainian President
Kate Middleton's Absence from Colonel's Review Due to Chemotherapy
UK Foreign Secretary Deceived by Prank Video Call
Sunak Criticised Over D-Day Exit in BBC Debate
Rishi Sunak Apologizes for Leaving D-Day Commemoration Early
UK Woman Sentenced After Causing Fatal Crash While Sending Selfies
Danish Prime Minister Mette Frederiksen Assaulted in Central Copenhagen
UN to Add Israel to Human Rights Blacklist
Germany and France Oppose EU Luxury Car Restrictions to Russia
Plus-Sized Miss Alabama Sara Milliken Responds to Online Critics
Nigel Farage's Return Boosts Support for Reform UK Party
Labour Party to Pledge Recognition of Palestinian State in Election Manifesto
British Paratroopers Greeted by French Customs After D-Day Anniversary Airdrop
UK Statistics Watchdog Chief Urges Sunak to Clarify Labour Tax Claim Source
UK Conservatives Promise to Restore Child Benefit for Higher Earners