UK house prices see first annual fall in 3 years

UK house prices have recorded their first annual fall in nearly three years, as rising borrowing costs and economic uncertainty continue to weigh on the property market. According to lender Lloyds, house prices fell by 0.4% in August compared with a year earlier. This marks the first year-on-year decrease since November 2023. On a monthly basis, prices declined by 0.2% in August, following a 0.1% drop in July. The average property price in the UK now stands at £298,468, based on Lloyds' index. The figures indicate a subdued market, with economists having forecast a slight monthly rise rather than a decline. Andrew Asaam, mortgages director at Lloyds, explained that the housing market has faced a more difficult backdrop recently, with global events impacting inflation and borrowing costs, leading to greater economic uncertainty. "What we're not seeing is a rush of homeowners cutting prices," Asaam stated. "But more are choosing to sit tight, with sellers reluctant to accept offers they feel are too low, while some buyers are waiting to see how conditions develop.