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House prices have fallen.

 

House prices

House prices have recor­ded their first monthly fall in more than a year, reflect­ing the effect of rising bor­row­ing costs on res­id­en­tial prop­erty.

The mar­ket dipped 0.3 per cent between Octo­ber and Novem­ber, the first decline since Octo­ber 2021, the Office for National Stat­ist­ics said yes­ter­day.

The fig­ure brought the annual growth rate to 10.3 per cent in Novem­ber, down from 12.4 per cent in the pre­vi­ous month, the data showed.

Infla­tion of more than 10 per cent is heap­ing fur­ther pres­sure on house prices, with more people strug­gling to afford a deposit and monthly mort­gage repay­ments.

Prop­erty prices are on track for a double-digit fall as the eco­nomic down­turn «becomes entrenched», said Andrew Good­win, chief UK eco­nom­ist at Oxford Eco­nom­ics. However, he noted, the strong labour mar­ket and the high share of fixed-rate mort­gages would limit the price cor­rec­tion.

The ONS data were echoed by a Royal Insti­tu­tion of Chartered Sur­vey­ors’ report today, which sig­nalled a slow­down in sales activ­ity and demand in Decem­ber. In addition, the Rics house price bal­ance, which shows the dif­fer­ence between the pro­por­tion of sur­vey respond­ents report­ing rises and falls in house prices, slid to minus 42 per cent in Decem­ber, well below the neg­at­ive 26 per cent pos­ted in the pre­vi­ous month.

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Comments

  1. Dave19 January 2023 at 13:10

    Right now, this fall is not seen in the market. I haven't seen a house for sale with a good price, not yet. Hopefully in a month or two.

    ReplyDelete
  2. Riana19 January 2023 at 16:51

    I wish we would see a double-digit fall in prices. This is wishful thinking if you ask me but I'm ready to be proven wrong and I will be quite happy if this happens.

    ReplyDelete
    Replies
    1. James19 January 2023 at 18:13

      I think it will happen but it will take at least another 3 months (so in April maybe?) for this to happen.

      Delete

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