House prices in the UK fell in October at the fastest monthly rate since February 2021 amid rising mortgages rates and a downbeat outlook, according to data released on Monday by mortgage lender Halifax.
Prices declined by 0.4% on the month following a 0.1% dip in September. On the year, meanwhile, house prices were down 8.3% in October following a 9.8% fall a month earlier.
A typical UK property now costs £292,598 – a five-month low – down from £293,664 in September.
Kim Kinnaird, director of Halifax Mortgages, said: “While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases. While it is likely that those rates have peaked for now – following the reversal of previously announced fiscal measures – it appears that recent events have encouraged those with existing mortgages to look at their options, and some would-be homebuyers to take a pause.
“Understandably we have also seen consumer caution grow, as industry data shows mortgage approvals and demand for borrowing declining. The rising cost of living coupled with already stretched mortgage affordability is expected to continue to weigh on activity levels. With tax rises and spending cuts expected in the Autumn Statement, economic headwinds point to a much slower period for house prices.”
