LONDON, Sept. 7 (Xinhua) -- Average house prices in the United Kingdom (UK) fell by 4.6 percent year-on-year in August, the biggest yearly drop since 2009, as the "impact of higher rates flows through," UK mortgage lender Halifax said on Thursday.
On a monthly basis, the average house price fell by 1.9 percent in August, the largest monthly fall since November 2022, marking the fifth consecutive month of decreasing house prices.
"House prices have proven more resilient than expected so far this year, despite higher interest rates weighing on buyer demand. However, there is always a lag-effect where rate increases are concerned, and we may now be seeing a greater impact from higher mortgage costs flowing through to house prices," said Kim Kinnaird, director of Halifax Mortgages.
Britain's central bank, the Bank of England, has raised interest rates 14 times in a row since December 2021, bringing the rate to 5.25 percent, to battle against stubbornly high inflation.
A typical UK home now costs 279,569 British pounds (348,560 U.S. dollars), down by around 14,000 pounds over the last year, back to the level seen in early 2022. Average prices remain roughly 40,000 pounds above pre-pandemic levels, said Halifax.
"We do expect further downward pressure on property prices through to the end of this year and into next," said Kinnaird.
