UK House Prices Post Biggest Drop Since 2008

Average house prices in the UK posted their largest monthly drop since October 2008 and the third consecutive fall, according to Halifax on Wednesday.

The mortgage lender revealed that the average house price fell by 2.3% in November compared to a decline of 0.4% in October, with the typical UK property now costing £285,579, down from £292,406 last month.

The decline puts average UK house prices at their lowest level since March.

Halifax revealed that the annual rate of growth declined to +4.7% from +8.2%, with the annual growth rate slowing in all but one region — the North East — during November.

“While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (+19% since March 2020) – this month's fall reflects the worst of the market volatility over recent months,” said Kim Kinnaird, Director of Halifax Mortgages.

Kinnaird added that property prices are still more than £12,000 higher than the same time last year and “well above pre-pandemic levels (+£46,403 vs March 2020).”

“The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy – and more specifically the labour market – performs will be key in determining house prices changes in 2023,” Kinnaird added.

Following the news, shares of housebuilders such as Persimmon, Taylor Wimpey, and Redrow have dipped, while online housing site Rightmove has also edged lower.