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UK house prices fall at fastest rate in 14 years, says Halifax

House prices in the UK fell by 2.3% in November, according to Halifax, the largest monthly drop on its index since the beginning of the financial crash in 2008.

The fall is the third in a row and means the average house price last month was £285,579, down from £292,406 in October.

Meanwhile, the lender said the annual rate of house price growth slowed to 4.7%, down from 8.2% in October. The annual growth rate slowed in all areas of England, apart from the north-east, with a similar slowing trend in Northern Ireland, Scotland and Wales.

During the pandemic, Wales and the southwest, hotspots of house price inflation, experienced the biggest cooldown, which Halifax said suggested that “previous drivers of the market, such as the race for space and heightened demand for rural living, are now receding”.

Kim Kinnaird, the director at Halifax Mortgages, said the market might be going through a period of “normalisation” and house price changes next year would depend on factors such as the rising cost of living and how the economy performed.

She said: “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.

“Some potential home moves have been paused as homebuyers feel increased pressure on affordability, and industry data suggests that many buyers and sellers are taking stock while the market stabilises.”

Mark Harris, the chief executive of the mortgage broker SPF Private Clients, said: “Annual house price growth continues to slow as activity softens and the market gradually returns to something closer to what we were used to pre-pandemic.

“Mortgage rates continue to float gently downwards, but the psychological 5% barrier has been broken for two- and five-year fixes.”

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