By Sarah Macklin 
Amidst a turbulent housing crisis, Halifax has revealed that house prices fell again in July 2023, making them 2.4% lower than this time last year.
In July 2023, prices fell by another 0.3% from June, and it was the fourth consecutive month to see a drop. They found that the average house price now stands at £285,044, down from a peak of £293,992 last August.
Rival company Nationwide also reported that house prices fell at the fastest annual rate in 14 years in June 2023, and they reckoned they fell by up to 3.8%. So what does this mean for house buyers and sellers?
While the ongoing fall in house prices may be good news for wealthy buyers, there has been a reduction in the availability of affordable mortgages. Following the Bank of England’s 14th interest rate hike, the average 2-year fixed rate now sits at an uncomfortable 6.7%, whilst 5-year fixes are at 6.18%.
In light of this, David Hannah, Chairman of Cornerstone Group International – the UK’s leading property tax experts – discusses the current state of the property market. Hannah points out that whilst interest rates remain high, they may have now peaked and could fall towards the end of the year and into early 2024.
He says: “The predictable downward trend in house prices comes as no surprise, given the lingering effects of rate uncertainty and affordability challenges in the market. Prospective buyers are still caught between adopting a cautious approach and displaying heightened assertiveness while making property offers.
“Nevertheless, there is a glimmer of hope as certain lenders are reducing mortgage expenses in response to the approaching peak of the bank rate. This suggests that although market sentiment may remain restrained, I hold the belief that the second half of this year will witness an improvement.”
