House prices have seen a decline for the fifth straight month, attributed largely to the increase in borrowing expenses.
In the year leading up to September, the average property value decreased by 4.7%, as stated by the Halifax house price index. This came after a 4.5% decline in the year up to August.
Despite the Bank of England maintaining the interest rates at 5.25% in the previous month, the average house value now stands at £278,601, reflecting a reduction of about £1,200 from the past month.
In September alone, prices dipped 0.4%, marking the sixth month in a row of such declines.
Kim Kinnaird, the director of Halifax Mortgages, remarked, “The housing market has been more muted lately, with industry statistics showing a dip in both the number of new home listings and agreed sales.
The primary driver behind this is the effect of rising interest rates on the affordability of mortgages. With these conditions, sellers are adjusting their expectations on house prices, signalling a shift towards a buyer-dominated market.”
Earlier this week, data from Nationwide pointed to an ongoing trend, showing house prices falling for the eighth consecutive month in the year to September, with a decrease of 5.3%. However, compared to August, the prices remained stable.
