London Daily

Focus on the big picture.
Sunday, Jul 13, 2025

House prices fall for sixth month in row -  but first-time buyers facing major problems, figures show

House prices fall for sixth month in row - but first-time buyers facing major problems, figures show

The average house cost fell to £257,406, according to Nationwide's index, as the September mini-budget is shown to be a "turning point" for the property market.
House prices have fallen for the sixth month in a row and dropped 1.1% in the year up to last month, according to one of the UK's biggest mortgage lenders.

House price data from Nationwide building society showed it was the first annual decline since June 2020.

On a monthly basis, the price fall from January to February was 0.5% - the weakest month since November 2012.

The decline brought the average house price to £257,406 in February, down from £258,297 in January.

House prices last month were also down 3.7% from the peak of last August.

Mortgage approvals are also down, dampening demand for houses.

Official figures released today by the Bank of England on Wednesday showed net mortgage approvals decreased for the fifth month in a row, to 39,600 in January from 40,500 in December.

If the COVID-19 pandemic period is excluded, this was the lowest net approvals figure since January 2009 (32,400).

But the lower prices do not make it easier for first-time buyers, Nationwide's chief economist said.

For a prospective first-time buyer earning the average income and looking to buy the average home, mortgage payments remain well above the long-running average share of take-home pay.

Deposit requirements remain "prohibitively high for many", Robert Gardner said, and saving for a deposit "remains a struggle" especially for those in the private rented sector, where rents strongly increased.

The situation may improve if inflation moderates in the coming months as expected, Gardner added, as wage increases combined with declining house prices would support housing affordability.

While the market instability that followed the Liz Truss mini-budget has cleared up, Nationwide's chief economist said housing market activity had remained subdued.

Those effects have impacted market confidence and have added to the broader economic factors weighing on households, such as double-digit inflation and falling real wages, as pay rises failed to keep pace with inflation.

The September mini-budget and associated mortgage upset was described as a "turning point for the market" by Sarah Coles, the head of personal finance at Hargreaves Lansdown.

"After withstanding months of increasingly painful inflation, buyers were at full stretch - and the mortgage market mayhem in the aftermath of the mini-budget was the final straw," she said.

"We knew from that point that a house price correction of some kind was likely to be on the cards."

While prices were expected to continue falling, where the housing market goes next is uncertain, said Ms Coles.

"The question is whether this is the beginning of a gradual and modest deflation, or a bubble that's set to burst. There's no doubt we'll see more falls in the coming months, but overall predictions of drops come in anywhere between 5% and 12%."

"Unfortunately, it's getting increasingly difficult to remain optimistic."
Newsletter

Related Articles

0:00
0:00
Close
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
×