UK house prices have experienced the biggest monthly fall in over 2 years according to house price data from Nationwide. Its latest house price index report revealed that house prices fell 1.4% on average in November, with average house prices falling from £268,282 to £263,788. Nationwide's Chief Economist Robert Gardner said that "While financial market conditions have stabilised, interest rates for new mortgages remain elevated and the market has lost a significant degree of momentum. Housing affordability for potential buyers and home movers has become much more stretched at a time when household finances are already under pressure from high inflation".
The latest house price index data from Halifax also showed signs of a falling housing market with average house prices falling 0.4% in October and Rightmove reported a drop of 1.1% in its November house price index report. A fall in UK house prices had been expected, with the Office for Budget Responsibility (OBR) predicting a drop of 9% between now and the third quarter of 2024. To keep on top of the latest house price predictions, check out our article 'What is going to happen to UK house prices?'. The article is regularly updated with the latest UK house price data sourced from HM Land Registry as well as data from the UK's leading lenders.
Is now a good time to move?
If you are a homeowner and are considering moving, it may pay to act quickly to take advantage of the tail-end of the recent house price boom, especially as house prices are likely to trend downwards over the coming months. Conversely, if you are a first-time buyer, you may want to wait it out as it could save you money if house prices continue to fall.
If you are thinking of moving or remortgaging and you do not have a mortgage adviser you can trust, you could consider independent online specialist Habito*. Its service is user-friendly and easily accessible, taking much of the administration and jargon out of a mortgage application. Alternatively, complete this short form with VouchedFor to receive a 1-minute mortgage review from a 5-star rated mortgage broker.
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