Halifax has reported that average house prices fell in November, as the rate of annual growth slowed further to +4.7% (from +8.2%).
The typical UK property price is currently £285,579.
The monthly drop of -2.3% is the largest seen since October 2008 and the third consecutive fall.
Kim Kinnaird, director of Halifax Mortgages, said: “While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (+19% since March 2020) – this month’s fall reflects the worst of the market volatility over recent months.
“Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.
“When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen. Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (+£46,403 vs March 2020).
“The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy – and more specifically the labour market – performs will be key in determining house prices changes in 2023.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “The housing market surveys are catching up with what’s been happening on the ground for the past few months.
“Existing sales are holding up, providing no-one in the chain has to remortgage at a much higher rate. As a result, prices are softening but continue to be supported by low stock and strong employment.
“New business is hard to come by and only slowing returning now lending rates are starting to fall with buyers factoring in where they expect pricing to be next year.”