House prices fallen for the first time since June 2021, The Guardian reports. The latest figures from Halifax show that the average price of a home was £293,221 in July, which represents a monthly fall of 0.1%. The news comes as the Bank of England raised interest rates to 1.75%, and warned the UK faces a prolonged recession.
Russell Galley, the managing director of Halifax, said: “While we shouldn’t read too much into any single month, especially as the fall is only fractional, a slowdown in annual house price growth has been expected for some time.”
He added: “Leading indicators of the housing market have recently shown a softening of activity, while rising borrowing costs are adding to the squeeze on household budgets.”
“Looking ahead, house prices are likely to come under more pressure as those market tailwinds fade further and the headwinds of rising interest rates and increased living costs take a firmer hold. Therefore, a slowing of annual house price inflation still seems the most likely scenario.”
This may be good news for any first-time buyers looking to take their first step onto the property ladder. If house prices continue to fall, it will mean that buyers have more bargaining room, and sellers may be more inclined to lower prices to achieve a quick sale.
When it comes to applying for a mortgage, it is advisable to shop around, because not all lenders use the same assessment criteria. Some may be deterred from making an offer by a bad credit record for example, but others will look at other factors, such as your current level of income and outgoings.
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Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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