UK house prices post biggest quarterly drop since 2009: Halifax

LONDON: British house prices slid again in December, capping the largest quarterly drop since the financial crisis more than 10 years ago, data from mortgage lender Halifax showed on Friday.

The average house price fell 1.5% month-on-month in December, following a 2.4% fall in November and marking the fourth consecutive monthly decline, Halifax said.

In quarterly terms, house prices fell 2.5% – the biggest drop since the three months to February 2009.

“Uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market,” Halifax director Kim Kinnaird said.

Halifax expects house prices to drop 8% in 2023 – although Kinnaird noted that this would only mean a return to levels last seen in April 2021.

House prices surged during the COVID-19 pandemic as people rushed to buy bigger homes with gardens, fuelled by temporary tax incentives.

Halifax said the annual rate of house price growth fell to 2.0% from 4.6% in November, the lowest reading since October 2019.

“As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall,” Kinnaird said.