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House prices fall for the first time in a year, says Halifax

Home prices fall for the first time in a year, Halifax says as interest rate hikes put pressure on buyers… but the average house still costs £293,221

  • The average house price in the UK is now £293,221
  • The growth rate fell from 12.5% ​​in June to 11.8% last month
  • Wales showed the strongest annual growth in the UK as prices rose 14.7%

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House prices in the UK fell slightly by 0.1 percent in July compared to the previous month, the first decline since June 2021.

The year-on-year growth rate also slowed, with prices rising 11.8 percent in the 12 months to July, compared with a 12.5 percent increase through June, Halifax said.

A typical UK property now costs £293,221.

The dip in growth is according to Halifax.  the first time it decreases since June 2021

The dip in growth is according to Halifax. the first time it decreases since June 2021

Russell Galley, CEO of Halifax, said: ‘While we shouldn’t read too much in a single month, especially as the decline is only fractional, a slowdown in annual house price growth has been expected for some time.

“Leading housing market indicators have recently shown a slowdown in activity, while rising borrowing costs are putting pressure on household budgets amid exceptionally high house price-to-income ratios.”

“Looking ahead, housing prices are likely to come under more pressure as those market winds fade further and the headwinds of rising interest rates and rising cost of living become more robust. Therefore, a slowdown in annual house price inflation still seems the most likely scenario.’

Financial pressure on households and high income-price ratios mean, as expected, a slowdown in real estate prices.

Financial pressure on households and high income-price ratios mean, as expected, a slowdown in real estate prices.

Financial pressure on households and high income-price ratios mean, as expected, a slowdown in real estate prices.

Wales saw the highest house price inflation in July with prices rising 14.7 per cent, with an average property price of £222,639. It is closely followed by the South West of England, which also continues to show strong annual growth, up 14.3 per cent, with an average property price of £310,846.

While London continues to record slower annual house price inflation than the other UK regions, growth of 7.9 is the highest in nearly five years. With an average property now costing £551,777, the capital’s already record average house price continues to rise, at £40,361 in the past year.

First-time homebuyers saw price inflation fall to 10.7 percent in July, from 12.4 percent in June. The pace of growth is lagging behind price increases for home movers, which rose 12 percent in July from 12.5 in June.

The price increase for larger homes continues to outpace smaller homes, with the average price for a detached home increasing 15.1 percent over the year, compared to 7.7 percent for apartments. These are raises of £60,860 and £11,962 respectively.

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1659634510 283 UK recession explained What mortgage interest rates rise means for

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