The average UK house price fell annually in August, marking the first year-on-year decrease since November 2023, according to Lloyds Bank’s index. A 0.4% average annual drop in property values was recorded, with the typical house price falling by 0.2% month on month after a 0.1% decrease in July. The average house price in August was £298,468.
Andrew Asaam, mortgages director at Lloyds, stated that despite the annual decline, prices remain marginally higher than at the start of the year. The housing market has faced challenges due to global economic uncertainty, including inflation and borrowing costs. There is no widespread price-cutting by homeowners, but some sellers are hesitant to accept low offers, while buyers are waiting for clearer conditions.
House prices remain around 25% higher than at the end of 2019, despite recent interest rate increases. Northern Ireland saw the strongest annual growth at 6.9%, with an average property value of £231,245. Scotland’s prices rose by 3.5% annually, while Wales saw a 0.6% increase.
In England, growth was strongest in northern regions, but southern England faced affordability pressures. Looking ahead, Asaam expects the market to remain subdued but believes demand will be supported by wage growth and stable employment.
Source: The Independent
