Fastest fall in house prices for 18 months
PROPERTY experts have warned of a pricing crisis after values fell at the fastest rate since early 2021.
The value of a typical three-bedroom semi dropped by 0.4 per cent to £292,598 in October, the third month-on-month fall seen in the past four months, Halifax said.
And analysts warned of more falls ahead as consumer confidence in the market dives.
The latest slowdown follows monthly drops of 0.1 per cent in both July and September.
Recession
Annual house price growth then slowed to 8.3 per cent in October, from 9.8 per cent growth recorded in September.
Sarah Coles, an analyst at Hargreaves Lansdown, said: “Minibudget mayhem exacerbated house price misery, with prices dropping faster than they have in over 18 months.
“With recession looming, there’s every sign that confidence is draining from the market as house prices have fallen for three months out of the past four. Clearly a downward trend is developing and it would be foolish to rule out significant annual price drops in the coming months.”
Kim Kinnaird, director of Halifax Mortgages, said: “A post-pandemic
slowdown was expected. There’s no doubt the market received a significant shock as a result of the minibudget, which saw a sudden acceleration in mortgage rate increases.
“We have also seen consumer caution grow as industry data shows mortgage approvals and demand for borrowing declining.
“The rising cost of living coupled with already stretched mortgage affordability is expected to continue to weigh on activity levels.
“With tax rises and spending cuts expected in the autumn statement, economic headwinds point to a much slower period for house prices.”
Jason Tebb, of property website On The Market, said: “Sellers are likely to find that if they don’t price realistically, they may struggle to generate interest.”