London market cools as house prices drop around Britain

HOUSE prices fell at their fastest rate since the start of the financial crisis last month as the toxic fallout from Kwasi Kwarteng’s disastrous mini-Budget sent the property market plunging.

- Jonathan Prynn Business Editor

Latest figures from Britain’s biggest mortgage lender, Halifax, showed that the average cost of a home in Britain dropped 2.3 per cent last month, the third consecutive monthly decline and the biggest since October 2008. The annual rate of growth halved from 8.2 per cent to 4.7 per cent and is expected to go negative early next year.

The year-on-year growth rate in the rapidly cooling London market also slowed sharply from 6.6 per cent in October to 5.2 per cent and agents warned falls are likely in 2023. Prices in the capital were rising as fast as 8.6 per cent as recently as August. Kim Kinnaird, director of Halifax mortgages, said: “While a market slowdown was expected given the known economic headwinds — and following such extensive house price inflation over the last few years — this month’s fall reflects the worst of the market volatility over recent months. Some potential home moves have been paused as homebuyers feel pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.”