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UK house prices register first annual drop in nearly three years

The Guardian reports that property values fell 0.4% annually in August, citing Lloyds bank data.

The short version

  • UK house prices fell 0.4% year on year in August, marking the first annual decline since November 2023, according to figures from Lloyds bank.[The Guardian]
  • The average property price dropped 0.2% month on month to £298,468, with the south-east seeing the largest regional decline at 1.6%.[The Guardian]
  • Mortgage approvals hit their lowest level since early 2024 amid borrowing rates exceeding 5.6%, while Lloyds anticipates market activity will remain subdued in coming months.[The Guardian]

Key facts

  • Lloyds recorded a 0.4% year-on-year decline in UK house prices, falling short of the 0.2% growth projected in a Reuters economist poll.[The Guardian]
  • The average UK home price fell 0.2% month-on-month in August to £298,468.[The Guardian]
  • Regional prices dropped most sharply in the south-east, where values declined 1.6% to £381,729.[The Guardian]
  • Mortgage approvals declined to their lowest level since the start of 2024 as average fixed rates hovered around 5.6%.[The Guardian]

What remains uncertain

  • The extent to which market conditions will continue to constrain home valuations remains uncertain, though Lloyds forecasts subdued activity with limited price impacts.[The Guardian]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.