Bigger-than-expected fall in house prices as rate hikes hit market

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House prices fell by 5.3% in the year to August - a bigger-than-expected drop, according to Nationwide.

The UK housing market has long lost touch with reality - but the recent modest fall in prices, confirmed by the Nationwide house price index figures for August, does follow the logic of economic trends.

While prices have been falling the volume of completions has stalled too, reflecting perhaps that many potential movers are waiting to see where rates will peak before they take the plunge. A drop of more than 5% will be most welcome to first-time buyers, but the benefit will likely be wiped out by the increased cost of the mortgage required to get on the ladder in the first place.

 

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Worse-than-expected fall in house prices as rate hikes hurt marketHouse prices fell by 5.3% in the year to August - a worse-than-expected drop, according to Nationwide.
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