The largest UK mortgage provider, Halifax, owned by Lloyds Bank Plc has published its latest UK property prices index today for July 2023.
The Halifax Property Index reported that the average UK property value has fallen by 2.4% over the year, this is the fourth consecutive fall in average property prices since April.
On 1st August, Nationwide separately reported its own index down with a 3.8% annual fall.
The difference being that each firm has a different client base and therefore a different range of average properties that they compare. Halifax’s figures show that:
Property prices appear to be stabilising, but we only see this a temporary slowing of the rate of price falls given seasonal activity and we suspect greater annual falls in August 2023 given the record high was set last August.
Interest rates are high but there appears to be a ‘mortgage war’ developing as lenders fight for a greater share of a falling market. Remember, the 1st law of supply and demand, if demand falls, supply increases and prices fall i.e., lenders are cutting rates which should help to cushion further falls but we still expect up to 10% falls over the coming year.