Warning to homeowners as house prices fall at fastest rate in 14 years

manchestereveningnews.co.uk:

House prices are finally starting to come down across the country after high demand and low supply over the last few years pushed property prices up.

The average cost of a home in the UK is now down by 4.5 percent since the peak last August, meaning house prices have fallen at the fastest annual rate in 14 years.

The value of properties on a whole declined by 3.8 percent on average annually in July, marking the weakest reading since July 2009, Nationwide Building Society said.

With house prices dropping by 0.2 percent month-on-month in July, a standard home now costs around £260,828 on average. But although prices falling tends to be good news amid the cost of living crisis, homeowners who are selling their homes are likely to be affected as the market dampens, whilst new buyers could continue to struggle with affordability due to soaring mortgage rates. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. Robert Gardner, Nationwide’s chief economist, said: “Investors’ views about the likely path of UK interest rates have been volatile in recent months. “There has been a slight tempering of expectations in recent weeks but longer-term interest rates, which underpin mortgage pricing, remain elevated.