 The average UK house price fell at the fastest annual rate in 14 years in July. Property values declined by 3.8% on average annually in July, marking the the slowest rate since July 2009, Nationwide Building Society said. House prices dropped by 0.2% month-on-month in July, to reach £260,828 on average. The price of a typical home is now 4.5% below the August 2022 peak, Nationwide said. Robert Gardner, Nationwide's chief economist, said: 'Housing affordability remains stretched for those looking to buy a home with a mortgage. 'For example, a prospective buyer, earning the average wage and looking to buy the typical first-time buyer property with a 20% deposit, would see monthly mortgage payments account for 43% of their take-home pay (assuming a 6% mortgage rate). 'This is up from 32% a year ago and well above the long-run average of 29%. 'Moreover, deposit requirements continue to present a high hurdle – with a 10% deposit equivalent to 55% of gross annual average income.' Property values declined by 3.8% on average annually in July (Picture: PA) He added unemployment levels are also expected to remain low and the 'vast majority of existing borrowers' should be able to withstand higher borrowing costs. The Bank of England base rate stands at 5% and is expected to potentially rise further on Thursday as the Bank tries to quell inflation. Mr Gardner said: 'While activity is likely to remain subdued in the near term, healthy rates of nominal income growth, together with modestly lower house prices, should help to improve housing affordability over time, especially if mortgage rates moderate once (the Bank of England base rate) peaks.' The average five-year fixed-rate mortgage has risen above 6% for the first time since November last year. It is the highest level since former chancellor Kwasi Kwarteng's mini-budget. The average five-year fixed-rate mortgage has risen above){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
The average UK house price fell at the fastest annual rate in 14 years in July.
Property values declined by 3.8% on average annually in July, marking the the slowest rate since July 2009, Nationwide Building Society said.
House prices dropped by 0.2% month-on-month in July, to reach £260,828 on average.
The price of a typical home is now 4.5% below the August 2022 peak, Nationwide said.