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TODAY'S OTHER NEWS

House prices dip for the first time in a year

House prices fell marginally by 0.1 per cent in July – the first decrease since June 2021, says the Halifax.

Annual rate of growth eased to 11.8 per cent from 12.5 per cent a month ago; a typical UK property now costs £293,221.

Halifax managing director Russell Galley says: “While we shouldn't read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time. 

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“Leading indicators of the housing market have recently shown a softening of activity, while rising borrowing costs are adding to the squeeze on household budgets against a backdrop of exceptionally high house price-to-income ratios.

“That said, some of the drivers of the buoyant market we’ve seen over recent years – such as extra funds saved during the pandemic, fundamental changes in how people use their homes, and investment demand, still remain evident. The extremely short supply of homes for sale is also a significant long-term challenge but serves to underpin high property prices.

“Looking ahead, house prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold. Therefore a slowing of annual house price inflation still seems the most likely scenario.”

Galley says it remains the case that price gains for bigger houses are noticeably outpacing those for smaller homes. 

The price of a detached house has leapt by 15.1 per cent over the last year, compared to 7.7 per cent for flats.

Wales has moved back to the top of the table for annual house price inflation, up by 14.7 per cent.

It’s closely followed by the South West of England, which also continues to record a strong rate of annual growth, up by 14.3 per cent.

The rate of annual growth in Northern Ireland eased back slightly to 14.0 per cent; Scotland too saw a slight slowdown in the rate of annual house price inflation, to 9.6 per cent from 9.9 per cent.

While London continues to record slower annual house price inflation than the other UK regions, the rate of 7.9 per cent is the highest in almost five years. 

With an average property now costing £551,777 the capital’s already record average house price continues to push higher, up by £40,361 over the last year. It remains by far the most expensive place in the country to buy a home.

   

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    I can see a drop in prices starting a pace when the October energy increase comes in 😱

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    Yes a little drop but that also means a drop in CGT so in real cash terms doesn't really make much difference to us

     
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    I can see prices dropping once the repo’s hit the market

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    Yes but that will take time as it did in the late 80s early 90s, the s **t will hit the fan in 2 - 3 years time just as we have a new labour government who really won't know what to do, will be funny to watch

     
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