Economic woes hit housing market as brokers warn of 20pc crash
House prices have fallen for the first time in 15 months as the property market starts to feel the effects of a worsening economic outlook.
Average house prices fell by 0.9pc in October, the first monthly decline since July 2021, according to a report by Nationwide. The average price is now £268,282, down from £272,259 last month, which the lender said was the sharpest drop in cash terms since June 2020.
Annual house price growth slowed to 7.2pc in October, and brokers warned that “a drop of 20pc or more over the next 18 months is quite possible”.
Robert Gardner, of Nationwide, attributed the drop in prices to former Chancellor Kwasi Kwarteng’s ill-fated mini-Budget impacting the markets and raising interest rates.