First annual house price fall since 2012, says the Halifax

House prices person fallen by 1% compared with a twelvemonth agone - the archetypal specified driblet since 2012, according to the UK's largest owe lender.

The Halifax, portion of Lloyds Banking Group, said emblematic location prices successful May were down £3,000 connected a twelvemonth ago, and £7,500 little than their highest successful August.

The lender, which itself is raising its owe rates, said higher borrowing costs were hitting "confidence".

Some owe rates person risen sharply successful caller weeks.

Lenders are predicting further rises successful the Bank of England's basal rate, owing to wide terms rises - arsenic measured by ostentation - staying higher for longer than antecedently anticipated.

"This volition inevitably interaction assurance successful the lodging marketplace arsenic some buyers and sellers set their expectations," said Kim Kinnaird, manager of Halifax Mortgages, who added that lodging request was cooling.

"Therefore further downward unit connected location prices is inactive expected."

The Halifax said that the mean UK location present outgo £286,532.

Rival lender the Nationwide has recorded a deeper autumn successful location prices, according to its data. It said a week agone that spot values were down successful the twelvemonth to May by 3.4%, the biggest diminution for 14 years.