UK house prices fall at fastest rate since 2009
UK house prices fell 0.2% month-on-month in July, and the annual rate of house price growth contracted, according to data released on Tuesday.
Annually, house prices were down 3.8% in July, the latest Nationwide House Price index shows.
“This was the weakest outturn since July 2009, although it is only modestly lower than the -3.5% recorded last month,” said Robert Gardner, Nationwide's chief economist.
The average price of a house in the UK is now £260,828, down from £262,239 a month earlier.
Read more: Bank of England likely to raise interest rates to new high
Meanwhile, data released has shown that there were 86,000 completed housing transactions in June. This is 15% below the levels the same time last year and around 10% below pre-pandemic levels. More timely mortgage approval data showed a slight increase in activity in June, though most of these applications will pre-date the more recent rise in longer term interest rates.
Activity is still 20% below 2019 levels, said Gardner.
The data comes as the UK housing market grapples with rising interest rates and a high rate of inflation. The Bank of England is due to meet later this week to decide on the course of the base rate, which informs mortgage rates for banks and borrowers. Central banks around the world have adjusted their rates in recent weeks to shore up the economy.
Read more: Interest rates: When will UK’s mortgage misery end?
The good news is that we’re not in the midst of a market crash, albeit we are seeing a downward correction," said , Chris Hodgkinson, managing director of House Buyer Bureau.
"However, the real challenge at present is the heightened level of market instability, the ability to actually find a buyer in a proceedable position and, once you have, making it through to completion without the transaction falling through.”
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