Inam Sehgal
LONDON: UK house prices have recorded their sharpest annual decline in more than three years, raising concerns about the outlook for the country’s housing market.
According to the latest figures from Lloyds, property prices fell by 0.6 per cent in October compared with September, bringing the average UK house price down to £296,285.
The annual decline reached 1.2 per cent, representing the biggest fall since October 2023. The figures also showed that prices had fallen for four consecutive months. Analysts had expected a modest increase of 0.1 per cent in October, but the unexpected decline highlighted growing pressure on the property market.
Lloyds attributed the slowdown to persistent inflation, higher mortgage borrowing costs and uncertainty surrounding the economic outlook. Rising household expenses have also made potential buyers more cautious about committing to property purchases.
Andrew Asaam, Mortgages Director at Lloyds, said the housing market was facing a challenging economic environment, with renewed inflationary pressures keeping borrowing costs high. The decline comes amid signs of weakening housing demand, with higher mortgage rates making it increasingly difficult for first-time buyers and families to afford homes.
However, experts believe that although the market may remain subdued in the coming months, the latest figures do not necessarily indicate a prolonged housing downturn. The figures are likely to bring some relief to prospective buyers, particularly those who have struggled with high property prices, although affordability remains a major challenge across much of the UK.
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