UK house prices plummet as interest rates take a devastating toll

UK House Prices Fall for Fourth Consecutive Month

House prices in the UK have fallen for the fourth consecutive month, according to 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. On a monthly basis, prices fell by 0.3%, marking the fourth consecutive monthly decline. The average UK home now costs £285,044, down from a peak of £293,992 in August of the previous year. Halifax predicts a "gradual" decline in prices in the coming months, rather than a sharp drop. However, the market is showing some resilience, with Southern England and Wales experiencing the most downward pressure on property prices.

Impact of Higher Interest Rates on House Prices

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

Challenges for Landlords in the Current Market

The decline in house prices is also impacting landlords, according to Halifax. High interest rates and concerns about reforms are causing difficulties for landlords in the current market. Overall, the housing market in the UK is experiencing a gradual decline in prices, with the South East and London being the most affected regions. Despite these challenges, the market is showing some resilience. The Bank of England's recent interest rate hike and the upcoming Q&A session with the chief economist will shed more light on the current economic conditions and their impact on the housing market.