# Biggest UK house price fall recorded since financial crisis
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-01-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK house prices fall at fastest rate since Feb 2009, warns
Meta Description: Get the latest updates on the sharp decline in British house prices in December, as the market faces its biggest drop since the financial crisis over 10 years
URL: https://financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisishtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-06t072921z2lynxmpej0506nrtroptp4britain-economy-houseprices-1736814617354-compressed.jpg)

By Andy Bruce

LONDON (Reuters) – British house prices slid in December, capping the largest quarterly drop since the financial crisis more than 10 years ago, data from mortgage lender Halifax showed on Friday.

The average house price fell by 1.5% month-on-month in December, following a 2.4% fall in November and marking the fourth consecutive monthly decline, Halifax said.

In quarterly terms, house prices fell 2.5% – the [biggest drop since the three months](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") to February 2009.

Graphic: UK [house prices fall](https://www.financedigest.com/buy-off-plan-to-beat-stalling-house-prices-and-falling-rental-yields-says-jean-liggett.html "“Buy off-plan to beat stalling house prices and falling rental yields” says Jean Liggett ") at fastest rate since Feb 2009: Halifax, https://fingfx.thomsonreuters.com/gfx/polling/zgpobrwwlvd/Pasted%20image%201672995163841.png

Other gauges of the housing market have also shown a sharp slowdown in the housing market, reflecting rising interest rates and a worsening economy as households suffer increases in the [cost of living](https://www.financedigest.com/indefensible-uks-sunak-under-fire-over-response-to-cost-of-living-crisis.html "‘Indefensible’: UK’s Sunak under fire over response to cost of living crisis").

[Bank of England](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") data on Wednesday showed lenders approved far fewer mortgages than expected in November.

Bond market turmoil triggered by former prime minister Liz Truss’s short-lived tax-cut plans also caused many lenders to withdraw [mortgage offers](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis") in October.

[“Property prices](https://www.financedigest.com/immediate-lift-of-oxford-property-prices-to-result-from-new-direct-high-speed-rail-connection-with-london.html "“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London") are likely to continue falling for the foreseeable future,” said economist Martin Beck from the EY ITEM Club consultancy, which expects house prices to fall around 10% over the next 12-to-18 months.

[Halifax expects house prices](https://www.financedigest.com/uk-house-prices-stabilise-after-four-month-fall-halifax-says.html "UK house prices stabilise after four-month fall, Halifax says") to drop 8% in 2023 – although it said this would only mean a return to levels last seen in April 2021.

House [prices surged](https://www.financedigest.com/explainer-oil-price-surge-changes-ecb-narrative-only-at-the-margins.html "Explainer-Oil price surge changes ECB narrative only at the margins") shortly after the COVID-19 pandemic took hold as temporary tax incentives drove a rush to buy bigger homes with gardens.

Halifax said the annual [rate of house price](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") growth fell to 2.0% from 4.6% in November, the lowest reading since October 2019.

As we enter 2023, the [housing market will continue](https://www.financedigest.com/uk-housing-market-weakness-continues-improvement-on-the-horizon-rics.html "UK housing market weakness continues, improvement on the horizon – RICS") to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall,” Halifax director Kim Kinnaird said.

(Reporting by Andy Bruce; editing by William James and Barbara Lewis)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---