UK house prices experienced the fastest August drop since 2009

Posted on September 11, 2023   |  

In August, UK house prices faced their steepest decline since the financial crisis, plummeting by 4.6% year-on-year.

The average UK house price now stands at £279,569, marking a £14,000 drop from the peak observed in September 2022 and returning to early 2022 levels.

Halifax reports a continuous five-month decline in house prices, with a substantial 1.9% drop in August, surpassing economists' expectations and July's 0.4% decrease.

A mini-budget introduced in September of the previous year disrupted the housing market, causing bond market chaos, surging borrowing costs, and reduced demand for mortgages, impacting developers and estate agents.

Price decreases are noted across all regions, with southeast England experiencing the most significant pressure, witnessing a 5% decrease over the past year. 

Despite recent fluctuations, the average house price remains £40,000 above pre-COVID levels due to the competitive pandemic housing market.