Halifax Property Index Prices Down 1st Time in 11 Years

Published / Last Updated on 07/06/2023

The largest UK mortgage provider, Halifax, owned by Lloyds Bank Plc has published its latest UK property prices index today for May 2023.

Halifax Property Index has reported that the average UK property value has fallen by 1% over the year, this is the first fall in average property prices since 2012.

Last week Nationwide reported on its own index and reported a 3.4% fall.

See: House Prices Fall

The difference being that each firm has a different client base and therefore a different range of average properties that they compare.

Conclusion

We are all aware of inflation and cost of living increases over the last 18 months or so and now with seemingly 12 months of consecutive interest rate increases, borrowers are struggling to afford to buy let alone vendors to sell after the abnormal property price increases post covid-19.

We suggest this correction will put property prices back to a more realistic market value level and until wages catch up, property prices and demand will fall.  Sadly, those that bought at the top end in August 2022 will likely see themselves in a negative position for a while, but prices will come back over the coming years.

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