UK House Prices Fall on Annual Basis for First Time in 11 Years

12 Jun 2023 CW Team

According to expectations in a Reuters poll, the average house price decreased 1.0% from May 2012 to May of this year, marking the first year-over-year reduction since December 2012.

Prices didn't change from April, when they dropped by 0.4%, on a monthly basis.

Kim Kinnaird, Halifax's director of mortgages, claimed that lower demand and increased interest rates will likely put more pressure on home prices.

Early in 2023, the property market in Britain made some progress toward the decline that had occurred late in the previous year as a result of the former prime minister Liz Truss's announcement of unfunded tax cuts, which set off chaos in the financial markets.

"The brief upturn in the housing market in the first quarter has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals, coming to an end," Kinnaird said.

According to other data from UK Finance, loans to first-time buyers fell to their lowest level since the spring of 2020, when the property market was essentially shut down due to the COVID-19 pandemic.

When consumer price inflation came in at 8.7% in April, above the consensus of 8.2%, bond yields spiked, and some mortgage lenders last month cut or repriced their loan offers.

Halifax, a subsidiary of Lloyds Banking Group (LLOY.L), announced that the interest rates on its fixed home loans would increase.

Higher rates, according to Capital Economics analysts, might lead to a new downturn in the British housing market.

Another lender, Nationwide, announced last week that April's home prices fell by 0.5% month over month and 3.4% annually, the worst reduction since 2009.

According to mortgage lender Halifax, British home prices fell on an annual basis in May for the first time in 11 years as the impact of higher interest rates on the property market became more apparent. According to expectations in a Reuters poll, the average house price decreased 1.0% from May 2012 to May of this year, marking the first year-over-year reduction since December 2012. Prices didn't change from April, when they dropped by 0.4%, on a monthly basis. Kim Kinnaird, Halifax's director of mortgages, claimed that lower demand and increased interest rates will likely put more pressure on home prices. Early in 2023, the property market in Britain made some progress toward the decline that had occurred late in the previous year as a result of the former prime minister Liz Truss's announcement of unfunded tax cuts, which set off chaos in the financial markets. The brief upturn in the housing market in the first quarter has faded, with the impact of higher interest rates gradually feeding through to household budgets, and in particular those with fixed rate mortgage deals, coming to an end, Kinnaird said. According to other data from UK Finance, loans to first-time buyers fell to their lowest level since the spring of 2020, when the property market was essentially shut down due to the COVID-19 pandemic. When consumer price inflation came in at 8.7% in April, above the consensus of 8.2%, bond yields spiked, and some mortgage lenders last month cut or repriced their loan offers. Halifax, a subsidiary of Lloyds Banking Group (LLOY.L), announced that the interest rates on its fixed home loans would increase. Higher rates, according to Capital Economics analysts, might lead to a new downturn in the British housing market. Another lender, Nationwide, announced last week that April's home prices fell by 0.5% month over month and 3.4% annually, the worst reduction since 2009. See also: Housing prices to rise near Noida International airportNew housing supply surges by 51% in 2022 across seven cities

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..