Worse-than-expected fall in house prices as rate hikes hurt market

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

The lender's figures were released as interest rate hikes by the Bank of England to tackle inflation send mortgage payments higher - as well as rental costs.

Additional housing bills are piling more misery on families at a time when the main measure of inflation is easing back from the highs of last winter, when unprecedented energy costs hit Western economies. The evolving cost of living crisis has squeezed affordability and demand at estate agents - and the Bank wants a wider economic slowdown to help cool the pace of price rises.Separate figures from property website Zoopla suggested that the UK was- the lowest level since 2012.

The slump in activity reflects not only the Bank's hikes to the cost of borrowing, but also poor confidence over the outlook.

 

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