The value of homes in south-east England has experienced a notable decline of £15,500 over the course of a year, following a substantial drop in house prices recorded in July. This decrease was reported by Halifax, a prominent High Street lender, which revealed that average house prices in the region, encompassing the home counties, contracted by 3.9%.
Wales, once a beneficiary of the pandemic-induced “boom,” also witnessed a significant tumble in house prices. However, despite these localized downturns, the broader UK housing market has demonstrated resilience, even amid the backdrop of elevated mortgage costs.
Halifax’s data indicated that, on a national level, average house prices slid by 2.4% in the year leading up to July, resulting in a typical home being valued at £285,044. This deceleration is marginally slower than the 2.6% decline registered in the year ending June. It is noteworthy that, despite the recent declines, house prices remain substantially higher than the pre-Covid pandemic era.
The impact of these market fluctuations was not evenly distributed across all regions. In south-east England, the value of a home diminished to £382,489 during July. Meanwhile, Wales, which had witnessed robust house price growth during the pandemic “boom,” experienced one of the more pronounced annual contractions, with prices dropping by 3.3% to £214,495. Greater London, another key market, saw a reduction of 3.5% in July; however, the average price remains elevated at £531,141 compared to other regions.
In July, average house prices saw declines across most parts of the UK, with the exception of the West Midlands where prices held steady. Notably, the north east of England continues to offer the most affordable home prices, with an average of £167,594.
Kim Kinnaird, the director at Halifax Mortgages, a subsidiary of Lloyds Banking Group, offered her insights on the UK housing market. She observed that the market “continues to display a degree of resilience in the face of tough economic headwinds.” Kinnaird also highlighted the endurance of first-time buyer activity, noting that some are now exploring options for smaller homes as a strategy to mitigate the impact of heightened borrowing costs.
