Despite annual house prices being up in July according to both the Nationwide Property Index at 11% pa and 11.8% via the Halifax Property Index, Halifax also reported the UK’s first fall in property prices for the month of July.
Halifax’s July Index found that property prices fell marginally in July by 0.1% compared to June.
That said, some areas are not slowing as much as others. During and post=pandemic, London property prices did climb as quickly as rural and coastal areas but now the rate of price increase slowdown in London is not as slow as the rest of the country as people return to normal routines and back to work in the cities.
London’s average price has still increased this year by £40,361 to £551,777.
We believe the July house price fall, albeit only 0.1% is just the start given the usual seasonal prices increase in summer, so the fall would have been higher if we were in Autumn or Winter. Interest rates are up. They will continue to rise by probably another 1-1.5% over the next year and recession is on its way. House prices are going to fall. This will make both lenders, surveyors, and buyers more cautious.