UK Housing Market Sees First Monthly Price Drop in Six Months Amid Rising Mortgage Costs

In March, UK house prices experienced their initial monthly decline in half a year, influenced by more expensive mortgage offerings and lingering ambiguity about forthcoming interest rate adjustments. Halifax's house price index revealed a 1% decrease, equating to £2,908, bringing the average property price down to £288,430. Mortgage rates began to rise after touching a low in January, with two-year fixed-rate deals climbing from 5.55% to 5.8% by March.

The market displayed resilience despite heightened borrowing expenses, with affordability constraints and sellers adjusting property pricing accordingly. Although prices remain significantly above pre-pandemic levels, prospects for substantial price surges in 2024 are limited due to only a modest improvement in affordability. Estate agents observed a bustling market supporting prices on an annual basis but noted monthly turbulence driven by buyers' advantageous position and vendors' willingness to negotiate.

Source: The Guardian