Biggest annual drop in UK house prices in 12 years

Median UK house prices fell 2.6 percent in June, the biggest annual drop since June 2011.

According to the Halifax House Price Index, the British housing credit institution, the fall in house prices was 1.1 percent in May, while in June it was 2.6 percent.

Thus, June saw the fastest annual fall in average house prices in the last 12 years in the United Kingdom.

On a monthly basis, median home prices declined 0.1 percent in June for three straight months.

While the average house price in the country was £285,932, this figure was £293,992 in August 2022, when prices peaked.

NEW HOUSING PRICES INCREASE 1.9 PERCENT ANNUALLY

Although new construction home prices rose 1.9 percent annually, the rate of price growth fell to the lowest level in three years.

Halifax Mortgage Director Kim Kinnaird, in his assessment of the data, asserted that there was a very low monthly decline in median home prices in June, saying: “On a year-over-year basis, the largest decline has been seen since June 2011 by 2.6 percent. , that is to say 7 thousand 500 pounds. .

Although the latest figures show some stability in the face of economic uncertainty, the housing market remains sensitive to the volatility of borrowing costs. used the phrases.

Kinnaird noted that the Bank of England’s 50 basis point rate hike last month caused a big jump in mortgage rates. (AA)