The UK has fallen from 26th to 47th place in global rankings for house price growth over the past year, Knight Frank’s latest Global House Price Index reveals.

According to Knight Frank, year-on-year, property prices in the UK fell by 3.1 per cent, while in the last six months they have fallen by 5.6 per cent.

It comes after the average interest rate for a five-year mortgage topped 6 per cent this week for the first time since the mini-budget.

The UK is now four places above Ukraine, which has seen property prices plummet since the invasion of Russia.

Overall, growth in global house prices fell to an eight-year low.

Average annual price growth across the 56 markets covered by index slowed to 3.6% in the twelve months to Q1 2023, down from 5.7% in the previous quarter. 

Turkey were top  of the ratings again last quarter, but Knight Frank put its ‘phenomenal growth’ of 132.8% down to ‘rampant inflation’.

Eastern and south-eastern European countries dominate the top of the rankings, with North Macedonia (18.8%), Croatia (17.3%) and Hungary (16.6%) all showing strong growth.