House prices in the UK fell the most since the pandemic began in October, as political and market turmoil sent shockwaves through the property market.
The median home value fell 0.9 per cent to £268,282 (€311,629), the Nationwide Building Society said. It was the sharpest drop since June 2020 and much stronger than the 0.3 percent drop economists had been expecting.
The figures show that the housing market is now in a downturn, with experts predicting values could fall by more than 10%. That would wipe out some of the gains it’s made over the past two years.
“The market was undoubtedly impacted by the post-mini-budget turmoil, leading to a sharp rise in market rates,” said Robert Gardner, chief economist at Nationwide. “Higher borrowing costs have contributed to stretched housing affordability at a time when household finances are already under pressure from high inflation.”
Mortgage rates in the UK are near their highest since the 2008 financial crisis since former Prime Minister Liz Truss roiled markets last month with a failed economic plan.
Mortgage approvals fell 10 percent in September.
https://www.independent.ie/business/world/british-house-prices-drop-as-rising-interest-rates-start-to-bite-for-buyers-42111967.html UK house prices fall as rising interest rates begin to bite buyers