UK house prices dip by 2.3% – the biggest fall since 2008

The UK’s house prices slipped by 2.3% in November which is the biggest monthly fall since October 2008, the Halifax house price index reveals.

The bank’s figures show that the annual rate of house price growth has fallen from October’s 8.2% to 4.7% in November.

Halifax says that the average UK house price has fallen by £6,287 to £285,579.

However, prices are more than £12,000 than in November last year.

‘Average house prices fell in November’

The director of Halifax Mortgages, Kim Kinnaird, said: “Average house prices fell in November as the rate of annual growth slowed further to +4.7% – from +8.2% – with the typical UK property price now sitting at £285,579.

“The monthly drop of -2.3% is the largest seen since October 2008 and the third consecutive fall.

“While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years, +19% since March 2020, this month’s fall reflects the worst of the market volatility over recent months.”

Halifax says that some homebuyers are now pausing house purchases because of affordability pressures.

‘Things have officially gone from bad to worse in the property market’

Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, said: “Things have officially gone from bad to worse in the property market, with the biggest monthly price drop since the financial crisis of 2008.

“We’re not yet in the realms of annual price falls, but if this pace continues, it won’t be long until we are.”

She added: “What’s even more worrying is that it takes around three months for a sale to move from being agreed to being completed, so these figures reflect sellers’ decisions in August – before the disastrous mini-budget.

“It means that buyers were already getting cold feet before Kwasi Kwarteng’s announcement forced mortgage rates through the roof.”

‘Yet more proof of a sustained fall in prices’

Phil Tennant, the COO of iBuyer UPSTIX, said: “While the end of the year typically sees slower growth as transactions decrease, it’s clear that the slowdown recorded in the latest data is yet more proof of a sustained fall in prices.

“The only question is how long, and how deep, the fall will be.”

He added: “An under-discussed aspect of the market slowing down is that transactions currently on the market are at greater risk of falling through.

“Those currently engaged in the buying or selling process are at the most immediate risk of loss – what consumers need in the here and now are solutions that bring certainty and ensure transactions can complete.”

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