The new Halifax house price index shows that the average price of a home in the UK experienced its most dramatic fall in more than a year and a half last month, which is being attributed at least in part to the shock caused by the mini-budget.
Average prices fell by 0.4% during the month, with this marking the third month where they have fallen out of the past four. By comparison, in September, the average UK house price fell by 0.1%. The steep fall in prices for last month is being blamed on a combination of the mini-budget proposals and a general slowdown following the post-COVID-19 rush.
When looked at on a regional basis, price inflation was lower in all UK regions except the Northeast during October. For London, the rate of house price inflation fell to 6.8% over the course of the month, while in Scotland it dropped to 7.5%, and in Northern Ireland it was 9.5%.
Speaking to Mortgage Strategy, the mortgages director at Halifax, Kim Kinnaird, stated that:
“While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases.”
She went on to add that it seemed likely that rates had reached their peak levels for the moment.
At a time when the housing market is fluctuating wildly, advice from someone with full CeMAP training is likely to be more essential to potential buyers than ever before.