House prices in the United Kingdom observed an annual decline of 4.7% in September, Halifax's House Price Index revealed in its report published on Friday. The prices decreased by 0.4% compared to the previous month to come in at an average of £278,601. Quarter-on-quarter, the figure slid by 1.8%.
"Activity levels continue to look subdued compared to recent years ... Borrowing costs are the primary factor, given the impact of higher interest rates on mortgage affordability," Halifax Mortgages Director Kim Kinnaird remarked.
"Many economists and financial markets predict that Base Rate will remain higher for longer, with any significant cuts appearing unlikely until inflation gets closer to the Bank of England's 2% target. Overall, these factors are likely to keep mortgage rates elevated in comparison to recent years, constraining buyer demand and putting downward pressure on house prices into next year," she concluded.
