UK House Prices Fall For First Time Since 2023

(RTTNews) - UK house prices declined for the first time since late 2023 in August, data published by Lloyds Banking Group showed Monday.

House prices dropped 0.4 percent on an annual basis in July, marking the first decrease since November 2023. The drop followed a marginal 0.1 percent rise in July.

On a monthly basis, house prices slid unexpectedly by 0.2 percent, following a 0.1 percent fall in July. Economists had forecast a monthly growth of 0.2 percent.

Lloyds Mortgages Director Andrew Asaam said the housing market faced a difficult time due to the impact of global events on inflation and borrowing costs.

He observed that homeowners were sitting tight instead of rushing to cut prices. At the same time, some buyers waited to see how conditions develop.

As a result, fewer homes changed hands, with latest industry figures showing mortgage approvals at their lowest since the start of 2024.

Asaam expects the housing market to remain fairly subdued in the months ahead but it will likely have a limited impact on house prices. Although affordability remains a challenge, wages continue to grow and employment held up better than expected, he noted. This will help to support demand from those who want to move, Asaam.