UK house prices fall by 4.7% in year to September

David Hannah, Chairman of Cornerstone Tax, comments on the Halifax House Price Index, showing UK house prices fall by 4.7% in year to September.

New data from the Halifax House Price Index has revealed that the average cost of a property declined by 4.7% in the year to September. The recent house price falls mean the average UK home has now dropped to levels seen in early 2022, at around £278,601.

In light of this news, David Hannah, Group Chairman of Cornerstone Tax – the UK’s leading property tax experts, discusses the consecutive fall in house prices and his predictions for the future of the market.

Halifax’s Price Index reported that all UK nations and the nine English regions registered a decline in house prices on an annual basis. Notably, the South East witnessed the greatest downward pressure on prices, falling by 5.7% over the last year.

Meanwhile, Northern Ireland has the most resilient house prices, down just 0.2% compared to this time last year, with the average house price of £184,108, a fall of less than £400.

Scotland also experienced a relatively modest annual decline of 0.8%, and Wales saw property prices fall by 3.6% over the last year.

London remains the most expensive place in the UK to purchase a home, with an average property price of £525,678, with prices down by 4.8% over the last year.

While the market has continued to cool, Hannah states that it is not all doom and gloom and insists that the market continues to show signs of resilience and activity, notably from cash buyers who are taking advantage of the fall in house prices.

This also comes at a time when the Bank of England has paused rising interest rates, which Hannah predicts will be a huge boost for consumers to start spending ahead of the holidays, bolstering Britain’s economy and trickling down to create an even bigger boost for the property market.

David Hannah, Group Chairman at Cornerstone Tax, discusses:

“The relentless surge in interest rates orchestrated by the Bank of England in the past has severely compromised the affordability of mortgages and affected buyers’ spending capacity.

“Yet, in the midst of this challenging landscape, there’s a glimmer of hope.

“Cash buyers are seizing the opportunities presented by falling prices, demonstrating the market’s resilience.

“What’s more, the Bank of England’s announcement that we may have reached the zenith of interest rates provides a ray of optimism.

“Positive news on borrowing costs could well breathe new life into the housing market.

“So, while the road ahead may seem uncertain, it’s important to remember that even in the face of adversity, the property market can adapt and rebound, offering opportunities for those who remain vigilant and strategic.”

Kindly shared by Cornerstone Tax