Demand falls

House prices fall for fourth consecutive month

For sale, sold, homes, housing, property

UK house prices fell for the fourth month in a row in December as the cost of living crisis and rising interest rates hit demand for property.

Halifax said the average house price fell by 1.5% in December, following a 2.4% drop in November pulling the annual growth rate down to 2%, from 4.6% a month earlier.

Kim Kinnaird, director, Halifax Mortgages, said: “As we’ve seen over the past few months, uncertainties about the extent to which cost-of-living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market.”

Jonathan Hopper, CEO of Garrington Property Finders, comments: “This remains a correction rather than a crash, for the simple reason that supply and demand are both waning together.

“Crashes happen when distressed sellers push up the number of homes for sale, prompting prices to plunge amid a glut of supply.

“Neither of those things is happening at present. Prices are sliding but so is supply, and this delicate balance is limiting the falls in price.”

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