UK House Prices Experience First Annual Fall in 11 Years: Halifax Report

The Halifax, which is the largest mortgage lender in the UK, has reported a decrease in house prices by 1% compared to the previous year. This is the first time in 11 years that such a decline has occurred, dating back to 2012.

According to the Halifax, which is a part of the Lloyds Banking Group, the average cost of houses in May has decreased by £3,000 compared to the previous year, and is now £7,500 lower than its height in August.

The entity that lends money to borrowers is also increasing the interest rates for mortgages. They stated that increased costs of borrowing are having a negative impact on people

In the recent weeks, there has been a significant increase in the mortgage rates

Lenders are anticipating an increase in the Bank of England’s base rate due to the persistence of high inflation rates, which are expected to remain elevated for a longer period than previously estimated.

According to Kim Kinnaird, who is the director of Halifax Mortgages, the current situation will certainly affect the trust people have in the housing market. This is because buyers and sellers are now modifying their expectations due to the recent changes. Kinnaird also stated that the demand

It is anticipated that there will continue to be a decline in the prices of houses.

According to the Halifax, the typical cost of a home in the UK is now £286,532. There has been a slight decrease in prices in comparison to the previous month. The drop in price is mainly attributed to the strong market trend observed a year ago.

According to the report, the south of England experienced a decrease in prices, while all regions except for Wales had a decrease in the rate of annual price growth.

The Nationwide, a competitor in the lending industry, has reported a more significant drop in house prices based on their collected information. Their data showed that property values experienced a decrease of 3.4% in the year leading up to May, which marks the most significant decline in 14 years.

First-time home buyers may appreciate the situation, but mortgage rates that are higher than expected are reducing their ability to purchase.

Data indicates that the increasing expenses of everyday life could be hindering individuals‘ capability to save money, including for a down payment. UK Finance, an organization that represents banks, reported a decline in the amount of money saved in accounts that allow immediate withdrawals during the initial three months of the year, which is the first decrease in 15 years.

Mortgage lenders have varying house price assumptions based on their own data. The Halifax and Nationwide have both observed a stagnant market, and they predict that property prices will continue to decrease.

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According to the predictions made by Capital Economics analysts, the prices of houses on the Halifax measure are expected to decrease by 12% from the peak recorded in August.

Estate agents are suggesting that property prices may not decrease significantly because they have observed a deceleration in the rate of price drops during the previous month.

According to Tom Bill, who is in charge of researching UK residential properties at the estate agency Knight Frank, a possible decrease in the housing market will not be significant due to various factors. These factors include increasing wages, minimal unemployment rates, the prevalence of cash sales, exceptionally high levels of housing equity, the availability of longer mortgage terms, and the savings accumulated during the COVID-

According to him, the UK housing market is experiencing a gradual decline after a period of growth, rather than a sudden and drastic drop.

Data provided by Moneyfacts indicates that the average interest rate for a new fixed-rate mortgage deal is 5.79% for a two-year term and 5.47% for a five-year term.

The current interest rates are significantly higher compared to the period prior to the rise in interest rates that occurred in December 2021. However, they are still lower than the rates observed after the mini-budget

Recent data from UK Finance reveals that an increasing number of individuals are obtaining mortgages that are spread out over longer periods of time. A significant proportion of first-time buyers, roughly one out of every five, are now choosing to take out mortgages that exceed a time frame of 35

According to UK Finance, customers may be selecting this particular choice with the aim of reducing their monthly payments and ultimately improving their ability to afford them.

The UK economy is facing difficulties due to the effects of high inflation and increasing interest rates.

According to a recent report by the OECD, the UK’s economic growth is predicted to improve slightly, with a projected increase of 0.3% this year followed by a moderate rise to 1% in 2024. However, the report also suggests that out of all the developed economies, only Germany is expected to have a worse performance than Britain in

The latest forecast shows a small improvement compared to the previous one made in March. It predicted a decrease of 0.2% for this year but now the decrease is expected to be slightly less. Additionally, there is a predicted increase of 0.

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