UK house prices recorded the biggest drop since mid-2020

LondonDec 1 – UK house prices fell 1.4% in November from October, their biggest monthly drop since June 2020 and the clearest sign yet of a slowing property market In the country quickly, data from Mortgage Bank Nationwide showed on Thursday.

A Reuters poll of economists had indicated a decline of 0.3 percent, after falling 0.9 percent in October.

On an annual basis, home price growth slowed to 4.4% in November, from 7.2% in October, according to Nationwide.

Other home price indices also indicated a continued slowdown.

Nationwide said the fallout from former prime minister Liz Truss’ economic program for September Which caused the collapse of British financial assets, which was amplified by the structure of the pension sector It continues to influence the real estate market.

“Although financial market conditions have stabilized, interest rates on new mortgages remain high, and the market has lost a significant degree of momentum,” said Robert Gardner, chief economist at Nationwide.

The market is likely to remain weak in the coming quarters, though a “relatively soft landing” is possible, Gardner said, thanks to a strong job market and reduced supply of homes coming to market.

Last week, a Reuters poll of economists and housing market analysts predicted that house prices would drop by about 5% next year, after rising by about 24% since the beginning of 2020, according to official data.