In September, UK house prices experienced their most significant annual drop in 14 years, marking the sixth consecutive monthly decline in what is currently described as a "buyer's market," according to Halifax, the largest mortgage lender in Britain.
Halifax reported a 4.7% decrease in prices for September, representing the most substantial year-on-year decline since 2009. The average price of a typical UK home dropped to £278,601, down from £292,197 in the same month the previous year. Recent data had already shown a decline in UK mortgage approvals in August, reaching their lowest level in six months, mainly due to elevated interest rates, which contributed to cooling down the housing market.
The Bank of England confirmed that net mortgage approvals for house purchases had fallen from 49,500 in July to 45,400 in August, marking a one-third decrease compared to the same month in the previous year. Last month, the Bank of England decided to keep interest rates steady for the first time in nearly two years, ending a streak of 14 consecutive rate hikes. This move raised the possibility that the peak in borrowing costs had been reached, as lenders began to reduce rates on mortgage deals.