UK house prices fall for first time in 11 years amid rising borrowing costs

UK house prices have experienced their first decline in over a decade, with increasing borrowing costs impacting potential buyers, according to mortgage lender Halifax. In May, the average property price saw a 1% drop compared to the same month in the previous year, with prices £7,500 lower than their peak in August.

Halifax’s Director of Mortgages, Kim Kinnaird, highlighted that higher interest rates are likely to put further pressure on house prices. She stated that the housing market’s brief upturn in the first quarter has faded, with the effects of higher interest rates gradually impacting household budgets, particularly for those with fixed-rate mortgage deals coming to an end.

Kinnaird added, “With consumer price inflation remaining stubbornly high, markets are pricing in several more rate rises that would take the base rate above 5% for the first time since the start…