UK House Prices Fall Most In 12 Years: Halifax
(RTTNews) - UK house prices declined at the fastest pace in twelve years in June as rising interest rates dampened demand, results of a survey by Lloyds Bank subsidiary Halifax showed Friday.
House prices fell 2.6 percent on a yearly basis in June, which was the biggest fall since June 2011. This followed a 1.1 percent decrease in May.
"With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer - annual growth peaked at +12.5% in June 2022 - supported by the temporary Stamp Duty cut," Halifax Mortgages Director Kim Kinnaird said.
House prices edged down 0.1 percent on month in June, following a 0.2 percent decrease in May. This was the third consecutive fall. A typical property cost GBP 285,932 in May. How deep or persistent the downturn in house prices will remain hard to predict, Kinnaird said.
With markets expecting a peak in the bank rate of above 6 percent, the likelihood is that mortgage rates will remain higher for longer, and the squeeze on household finances will continue to put downward pressure on house prices over the coming year, Kinnaird noted.
Data showed that London house prices logged an annual decline of 2.6 percent in June, which was the weakest performance since October 2009.
The Bank of England has lifted the benchmark rate over the last thirteen consecutive policy sessions, taking it to the current 5.00 percent, which was the highest since 2008.
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