House prices fell by 2.3% in November, marking the biggest monthly drop since 2008, according to an index.
The annual rate of house price growth slowed to 4.7%, from 8.2% in October, Halifax said.
The average UK house price in November was £285,579.
Kim Kinnaird, director of Halifax Mortgages, said: “The monthly drop of 2.3% is the largest seen since October 2008 and the third consecutive fall.
READ MORE: Scottish house prices rise despite weakening demand
“While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (19% growth since March 2020) – this month’s fall reflects the worst of the market volatility over recent months.
“Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to
stabilise.
“When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen.
“Property prices are up more than £12,000 compared with this time last year, and well above pre-pandemic levels (a £46,403 increase compared with March 2020).
“The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy – and more specifically the labour market – performs will be key in determining house prices changes in 2023.”
Here are average house prices and the annual increase, according to Halifax:
– East Midlands, £244,429, 9.5%
– Eastern England, £339,683, 7.3%
– London, £549,160, 5.2%
– North East, £173,587, 10.5%
– North West, £229,218, 9.4%
– Northern Ireland, £185,097, 9.1%
– Scotland, £203,132, 6.5%
– South East, £397,562, 7.6%
– South West, £307,750, 8.4%
– Wales, £220,689, 7.9%
– West Midlands, £253,253, 9.4%
– Yorkshire and the Humber, £207,800, 9.3%
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