UK house prices fall at fastest rate in 14 years

House prices in the UK tumbled at the fastest pace since October 2008, the height of the financial crisis, as rising mortgage rates made buying a new house less affordable.

House prices fell 2.3 per cent month-on-month in November following a 0.4 per cent decline during the prior month.

Other measures of house prices have also indicated that a slowdown is under way, with household budgets tightened by runaway inflation and soaring borrowing costs. In annual terms, house price growth decelerated to 4.7 per cent in November from 8.2 per cent in October.

“While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years, +19 per cent since March 2020 – this month’s fall reflects the worst of the market volatility over the recent months,” director of Halifax Mortgages, Kim Kinnaird, said.

In the meantime, activity in the US services sector accelerated unexpectedly in November, with employment rising, signalling underlying momentum in the economy as it braces for an anticipated recession next year.

The Institute for Supply Management’s (ISM) measure of services rose to 56.5 last month from 54.4 in...