UK house prices have experienced their first annual fall in nearly three years, with the average property value declining by 0.4% in August. This marks the first year-on-year decrease since November 2023, according to the latest Lloyds House Price Index.
The average UK home was valued at £298,468 in August, down from £299,153 in July. This represents a 0.2% monthly fall, following a 0.1% decline in July.
These figures indicate a subdued housing market, influenced by affordability pressures and borrowing costs affecting buyer activity. However, there are regional variations, with Northern Ireland showing the strongest annual growth at 6.9%.
Nathan Emerson, CEO of Propertymark, noted that ongoing global unease and rising household costs have led to caution among consumers, impacting house price growth. He suggested that the upcoming Autumn Budget, inflation figures, and interest rate announcement later this month may influence future buyer and seller plans.