UK house prices fall for fourth month running

The average UK house price has fallen by nearly £1,000 in just one month, according to a new index. Staggeringly high interest rates set by the Bank of England have seen buyers facing the possibility of paying up to 6 per cent excess on their mortgage deals. The run-off from the tumultuous market has resulted in property value falling for the fourth month in a row, dropping by 0.3 per cent between June and July. Figures from Halifax reveal that, in June this year, the average UK property value was nearly £1,000 higher than in July, at £286,011. Property prices dropped by 2.4 per cent on an annual basis, easing from a 2.6 per cent fall in June. This figure is down from a peak of £293,992 last August. Despite the ‘unsurprising’ fall, property agents have said the housing market remains ‘resilient’ as there is ‘still a desire to buy’. The map below shows the average housing price across the UK: Here are average house prices across the UK followed by the annual change in prices. The breakdowns are based on the most recent three months of approved mortgages, according to Halifax: East Midlands, £238,876, minus 1.4 per cent Eastern England, £333,474, minus 2.4 per cent London, £531,141, minus 3.5 per cent North East , £167,594, minus 1.4 per cent North West, £223,962, minus 0.9 per cent Northern Ireland, £185,322, minus 0.3 per cent Scotland, £201,501, minus 0.7 per cent South East , £382,489, minus 3.9 per cent South West, £299,649, minus 3.3 per cent Wales, £214,495, minus 3.3 per cent West Midlands, £250,285, 0.0 per cent Yorkshire and the Humber, £203,631, minus 0.5 per cent Southern England and Wales are seeing the most downward pressure on property prices, with the South East marking an annual change of -3.9 per cent at £389,489. This compares to the West Midlands where there is a zero per cent annual change in prices at £250,285. Kim Kinnaird, director, Halifax Mortgages , said: ‘Average UK house prices edged down slightly in July, with the monthly fall of 0.3 per cent equivalent to a drop of around £1,000 in cash terms. While this was the fourth consecutive monthly decrease, all have been smaller than (minus) 0.5 per cent ‘In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February.’ Property prices dropped by 2.4 per cent on an annual basis, easing from a 2.6 per cent fall in June. Average UK house prices has fallen by nearly £1,000 in cash terms between June and July Gareth Lewis, managing director of property lender MT Finance, said: ‘The continued decline in house prices is unsurprising as the market remains impacted by rate uncertainty and affordability issues. ‘Buyers are continuing to either play the waiting game or become more aggressive when offering on properties. But there are positive signs – there is still the desire to buy, but with a realignment with what is realistic or achievable in value. ‘The housing market is resilient, there are still not enough houses to go around so we will likely continue to see strong values, even with so much uncertainty.’ Kirsty Wells, director of St Leonards-on-Sea-based Blueprint Mortgages, said: ‘In the past few months, I have had a big increase in inquiries from first-time buyers, who are proving particularly resilient given market conditions. ‘They are in a much stronger position currently as so many people have their properties on the market but can’t sell so building a chain is very tricky, whereas if a first-time buyer can come along and save the day, then they can negotiate a better price. I have seen clients negotiating around 5% off average asking prices recently.’ Jeremy Leaf, a north London estate agent, said: ‘A growing expectation that inflation and interest rates are nearing their respective peaks, combined with continuing strong employment, are all helping to underpin activity. ‘Affordability is still a concern, especially for those on tighter budgets, often buying smaller properties so the market remains price sensitive.’