UK House Prices Fall For First Time In 6 Months
April 04 2024 - 10:54PM
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UK house prices declined for the first time in six months in
March, data published by the mortgage lender Halifax showed
Friday.
House prices dropped 1.0 percent on a monthly basis in March, in
contrast to the 0.3 percent rise in February. This was the first
decrease since September. Prices were expected to climb 0.3
percent. On a yearly basis, house price growth eased to 0.3 percent
from 1.6 percent in the prior month. Prices were expected to climb
1.5 percent.
A typical house now costs GBP 288,430, which was around GBP
2,900 less than last month.
Despite the fall, house prices have shown surprising resilience
in the face of significantly higher borrowing costs, Halifax
Mortgages Director Kim Kinnaird said.
Affordability continues to be a challenge for prospective
buyers, while existing homeowners on cheaper fixed-term deals are
yet to feel the effect of higher interest rates. Accordingly, the
housing market has not adjusted fully.
Kinnaird said the underlying demand is positive and as rental
costs are rising at record rates, home ownership continues to be an
attractive option.
However, Kinnaird added that the housing market remains
sensitive to the scale and pace of interest rate changes, and with
only a modest improvement in affordability on the horizon, this
will likely limit the scope for significant house price increases
this year.
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