Property prices fell for the first time in more than a year last month – as mortgages rose following ex-chancellor Kwasi Kwarteng’s mini-budget.
Annual price growth slowed to 7.2 per cent, from 9.5 per cent in September, reports Nationwide Building Society.
That was the first decline since July 2021, and means a typical UK home is worth £268,282. And the lender expects the market to slow even further.
Robert Gardner, Nationwide’s chief economist, said: ‘The market has undoubtedly been impacted by the turmoil following the mini-budget, which led to a sharp rise in market interest rates.
‘Higher borrowing costs have added to stretched housing affordability at a time when household finances are under pressure from high inflation.
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‘For coming quarters the outlook is extremely uncertain.’
Nicky Stevenson, of estate agent Fine & Country, said: ‘Transaction levels are likely to ease in the near term as the market adjusts to this new era of higher interest rates.’
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Annual price growth slowed to 7.2 per cent, from 9.5 per cent in September
