In October, prices went up by 8.2%.
On a monthly basis, house prices dropped by 2.3%, which is the largest reduction recorded since October 2008. It is also the third month in a row that prices have gone down.
All of this leaves the average property price in the UK at £285,579, according to Halifax’ figures.
Halifax Mortgages director Kim Kinnaird says: “While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (up 19% since March 2020) – this month’s fall reflects the worst of the market volatility over recent months.”
She continues: “When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen. Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (up £46,403 vs March 2020).”
“The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy – and more specifically the labour market – performs will be key in determining house prices changes in 2023.”
And GetAgent.co.uk co-founder and chief executive Colby Short says: “There’s no doubt that a lot of people will make mountains out of this price drop molehill but you can ask any estate agent you meet and they’ll tell you that the UK’s housing market is a million miles from danger. Buyer appetite remains strong and, in the lead up to Christmas, agents have got plenty on their plates before the turkey is even served.
“What we’re seeing here is an inevitable normalisation of what has been an historically frantic and expensive housing market.
“It’s clear that we’re going to see further adjustments in 2023 but when panic is emblazoned across the front pages, take it with a pinch of salt.”
