First annual fall in UK house prices since November 2023, in ‘subdued’ market – business live
Rolling coverage of the latest economic and financial news Lloyds’s Andrew Asaam adds that it’s important to keep the recent drop in house prices in perspective, explaining: Average house prices remain around 25% higher than they were at the end of 2019, despite the substantial increase to interest rates seen over recent years. The market’s adjustment to higher borrowing costs has been gradual,…
In a recent report, it was revealed that UK house prices have fallen for the first time since November 2023, marking a subdued market. Lloyds’s Andrew Asaam emphasized the importance of keeping this drop in perspective, stating that while average house prices remain around 25% higher than they were at the end of 2019, the market's adjustment to higher borrowing costs has been gradual. Wage growth has helped offset some affordability pressures.
The housing market is expected to remain subdued in the coming months, but the impact on prices is anticipated to be limited. Despite affordability challenges, wage growth and employment levels have outperformed expectations, which could support demand from buyers who want to move. However, sellers are hesitant to accept offers they perceive as too low, and some buyers are waiting to assess market conditions before making decisions.
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