UK house prices fell 0.4% year-on-year in August, according to data released by Lloyds Banking Group on the 7th, marking the first annual decline since November 2023. The median forecast in a Reuters poll of economists had predicted a 0.2% rise. On a monthly basis, prices fell 0.2%, contrary to market expectations of a 0.1% increase. Additionally, July's house price data, initially reported as a 0.1% rise, was revised down to a 0.1% fall. Andrew Asaam, head of Lloyds' mortgage division, said that global conditions are affecting inflation and borrowing costs, creating a challenging environment for the housing market. Meanwhile, Nationwide Building Society's statistics show a 1.6% year-on-year increase in house prices in August. Ruth Gregory of Capital Economics expects house prices to remain soft due to rising market interest rates.
Lloyds Banking Group PLCLloyds data shows UK house prices fell 0.4% y/y in August, the first annual decline since November 2023, missing forecasts and signaling a weaker housing market for its mortgage business.
