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UK house prices saw their sharpest monthly fall since last November in August, according to the Halifax House Price Index on Thursday.
Halifax said average house prices in the UK fell 1.9% in August from July, having edged down by a revised 0.4% in July from June. August’s decline was steeper than expected, with FXStreet-cited market consensus forecasting 0.3% drop.
Annually, prices fell 4.6% in August, accelerating from the 2.5% fall in July. However, Halifax noted that prices were at a record peak last summer.
The average UK home now costs £279,569, which is around £14,000 lower than the prior year, and back to the level seen in early 2022, Halifax said.
Kim Kinnaird, director of Halifax Mortgages, commented: ‘It‘s fair to say that house prices have proven more resilient than expected so far this year, despite higher interest rates weighing on buyer demand. However, there is always a lag-effect where rate increases are concerned, and we may now be seeing a greater impact from higher mortgage costs flowing through to house prices.
‘Increased volatility month-to-month is also to be expected when activity levels are lower, though overall the pace of decline remains in line with our outlook for the year as a whole.’
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