House prices plummet as UK faces fourth consecutive month of decline

House Prices in the UK Continue to Decline

House prices in the UK have fallen for the fourth consecutive month, with the south-east of England experiencing the largest decline, according to a report by lender Halifax. The average house price dropped by 2.4% on an annual basis in July, a slight improvement from the 2.6% drop in June, which was the largest decline since 2011. On a monthly basis, house prices fell by 0.3% in July. The average price of a home in the UK now stands at £285,044, down from a peak of £293,992 in August of the previous year. The report also highlighted that southern England and Wales are facing the most significant downward pressure on property prices.

Factors Contributing to the Decline

The decline in house prices is believed to be a result of higher interest rates, which have cooled the housing market. Last month, rival lender Nationwide reported the fastest annual rate of decline in house prices in 14 years, at 3.8%. Online portal Rightmove also reported a decrease in the average price of homes coming onto the market in July. European stock markets are expected to open lower following a late drop on Wall Street, and the Bank of England's chief economist will hold a Q&A session on the cost of living and current economic conditions.

Resilience in the Face of Challenges

The report from Halifax comes amid concerns about the impact of high interest rates and reforms on landlords. However, Halifax noted that the market is showing some resilience in the face of economic challenges. The data suggests that the housing market continues to display resilience despite these challenges.