UK house prices have fallen at their fastest rate since the aftermath of the financial crisis, according to figures from building society Halifax.
The UK’s largest lender reported that the average property price fell by 4.6% on an annual basis in August, down from the record highs seen last summer and the largest year-on-year decrease in house prices since 2009.
On a monthly basis, the average house price fell by 1.9% in August, the largest monthly fall since November 2022.
The price of a typical UK home dropped to £279,569, down by around £14,000 over the last year, back to the level seen in early 2022. It leaves average prices around £40,000 above pre-pandemic levels.
Kim Kinnaird, director, Halifax Mortgages, said: “We may now be seeing a greater impact from higher mortgage costs flowing through to house prices.
“Market activity levels slowed during August, and while there is always a seasonality effect at this time of year, it also isn’t surprising given the pace of mortgage rate increases over June and July.
“We do expect further downward pressure on property prices through to the end of this year and into next, in line with previous forecasts,” she said.