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

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..