UK house prices fall for the first time in nearly three years
In the United Kingdom, the average house price fell by 0.4% year on year in August — the first such decline since November 2023. According to mortgage lender Lloyds, the average property price stood at £298,468, down 0.2%, or £685, from July.
As The Guardian reports, the figure came in below the expectations of economists surveyed by Reuters, who had forecast annual price growth of 0.2%.
High rates and buyer caution
Lloyds director Andrew Asaam described the housing market as subdued due to higher inflation, borrowing costs and geopolitical tensions. According to him, property owners are not rushing to cut prices significantly, while some potential buyers are postponing their decisions as they wait for clarity on future market conditions.
More current news is available on the UA.News Telegram channel Telegram.
The average rate on a two-year fixed-rate mortgage was 5.6%, while the rate on a five-year mortgage was 5.66%, according to Moneyfacts. At the start of the year, both figures were below 5%. Lloyds also said that the number of approved mortgages had fallen to its lowest level since the beginning of 2024.
Different trends across regions
The strongest annual price growth was recorded in Northern Ireland — 6.9%, to an average of £231,245. In Scotland, house prices rose by 3.5%, to £223,437, while in Wales they increased by 0.6%, to £230,282.
In England, trends differed between the north and the south. In the North East, prices rose by 2.7%, and in the North West by 2%. The steepest decline was in South East England — 1.6%, to £381,729. In Greater London, the average house price fell by 1.5%, to £534,177.
