House prices in August 2023 were 4.6 per cent lower than the same month a year earlier, the worst since 2009 and the financial crisis.
New figures from Halifax show roaring mortgage rates have continue to pile on the misery for the UK’s housing sector.
The figure drops down from -2.5 per cent when compared to July as a summer of continued interest rates from the Bank of England sent buyer confidence plummeting.
The average home now costs £279k, with £5,000 knocked off its value since July, returning to the level seen at the start of last year.
During the month, London homes saw the most dramatic fall in price of any region in cash terms, tumbling 4.1 per cent to £529k as sellers slashed the value of their pads in order to sell.
However, the capital remains the most expensive place in the UK to purchase a home.
Despite mortgage rates slowly edging down from their mid summer peak, buyers have remained cautious about securing a sale on their home.
“Market activity levels slowed during August, and while there is always a seasonality effect at this time of year, it also isn’t surprising given the pace of mortgage rate increases over June and July,” Kim Kinnaird, director, Halifax Mortgages, said.
Kinnaird said she expects further downward pressure on property prices to continue through to the end of this year and into next.
She added: “The market will continue to rebalance until it finds an equilibrium where buyers are comfortable with mortgage costs in a higher range than seen over the previous 15 years.”