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UK house prices fell again in September, but the pace of the month-on-month decline slowed, according to the Halifax house price index released on Friday
Halifax said average house prices in the UK fell by 0.4% in September from August, slowing from a 1.8% decline in August from July. Market consensus cited by FXStreet had expected house prices to have declined by 0.8% on a monthly basis.
Annually, prices fell by 4.7% in September, accelerating from a 4.5% decline in August.
The average UK home now costs £278,601, around the level seen in early 2022. It is a £1,200 reduction from August.
Halifax noted that the south of England continues to see most downward pressure on property prices.
Kim Kinnaird, director of Halifax Mortgages, commented: ‘Activity levels continue to look subdued compared to recent years, with industry data showing lower levels of new instructions to sell homes and agreed sales. Borrowing costs are the primary factor, given the impact of higher interest rates on mortgage affordability. Against this backdrop, homeowners inevitably become more realistic about their target selling price, reflecting what has increasingly become a buyer’s market.
‘However, with base rate now likely to be at or around its peak, we are seeing fixed rate mortgages deals ease back from recent highs.’
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