House prices see biggest monthly fall since 2008

House prices in the UK plummeted by 2.3 per cent in November the biggest monthly fall since 2008, according to Halifax.

- EMILY ATKINSON

The bank also said the annual rate of house price growth also slowed to 4.7 per cent, from 8.2 per cent in October. Meanwhile, the average UK house price in November was £285,579. Kim Kinnaird, director of Halifax Mortgages, said:

"The monthly drop of 2.3 per cent is the largest seen since October 2008 and the third consecutive fall." Mortgage rates jumped following the mini-Budget by Liz Truss and Kwasi Kwarteng in September, with the Bank of England's base rate rises also pushing up borrowing costs, against a backdrop of households being squeezed by rising bills generally.

Ms Kinnarid continued: "While a market slowdown was expected given the known economic headwinds - and following such extensive house price inflation over the past few years (19 per cent growth since March 2020) - this month's fall reflects the worst of the market volatility over recent months.

"Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise. When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen."