Research shows average house price fall during August

September 14, 2023 by Mark

House Prices

Research by Halifax has found that there was a 1.9% drop in the average price of a home across the UK over the course of last month, with increases in mortgage costs being blamed for it.

This drop left the average house price at £279,569, with the fall being the heaviest for a single month the property market has witnessed since November of last year. When looked at annually, the average price compared with August of 2022 fell by £14,000, representing a 4.6% drop.

However, the average price in the summer of last year was at a record level, which should be borne in mind when making comparisons. Furthermore, although there has been a sharp month-on-month drop, the average price has actually returned to where it was in the early months of last year. It is also still £40,000 more than it was before the Covid-19 crisis hit.

Halifax Mortgages director Kim Kinnaird told Mortgage Introducer that average property prices had stayed fairly high even in the wake of interest rate rises, but that we were probably now starting to see the results of rising mortgage costs on the market.

Kinnaird went on to add:

“Increased volatility month-to-month is also to be expected when activity levels are lower, though overall, the pace of decline remains in line with our outlook for the year as a whole.”

Those with CeMAP mortgage advisor training will be looking to capitalise on this to help their clients get more affordable deals when buying.