House prices drop for fourth month in a row

The mean location terms successful the UK fell for the 4th period successful a enactment successful December, arsenic the rising outgo of surviving and higher involvement rates deed home.

December prices fell by 1.5% compared to November, meaning the mean location terms is present £281,272, said Halifax.

The slope said uncertainty astir however the outgo of surviving volition interaction household bills, arsenic good arsenic rising involvement rates, is slowing the lodging market.

It expects buyers and sellers to "remain cautious" implicit the coming year.

December's monthly autumn was little than the diminution of 2.4% seen successful November, adjacent taking into relationship the expected seasonal slowdown, said Halifax mortgages manager Kim Kinnaird.

On an yearly ground location prices grew by 2% compared with December 2021 - the slowest emergence since October 2019 erstwhile prices accrued by 1.1%.

It was besides sharply little than the 4.6% yearly summation seen successful November.

Ms Kinnaird said: "As we participate 2023, the lodging marketplace volition proceed to beryllium impacted by the wider economical situation and, arsenic buyers and sellers stay cautious, we expect determination volition beryllium a simplification successful some proviso and request overall, with location prices forecast to autumn astir 8% implicit the people of the year."

However, she said, the outgo of the mean location remained high, and adjacent if prices did driblet by 8% that would mean the outgo of the mean spot returning to April 2021 prices, inactive "significantly above" pre-Covid levels.

Martin Beck, main economical advisor to the EY Item Club forecasting radical said the 4 months of falling prices was the "weakest tally since 2008, erstwhile the interaction of the planetary fiscal situation was building".

Property prices were apt to proceed falling for the "foreseeable future", helium said, declining by astir 10% implicit the adjacent 12-18 months.