The average price of a UK property dropped by more than £4,000 from November to December, dipping to £281,272.
According to the latest Halifax House Price Index, typical homes fell from £285,425 in November, representing a monthly decline of 1.5 per cent.
This drop in price will make it more affordable for homebuyers to purchase their dream property, after months of soaring costs.
Kim Kinnaird, director of Halifax Mortgages, noted that house prices surged by £17,000 between January and August last year, and despite the recent fall, they
are still 11 per cent higher than they were at the start of 2021.
She stated this dip is the result of financial challenges lots of people have been facing over the last year, saying: “Uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market.”
December’s drop in prices followed a 2.4 per cent decline in November, and 0.4 per cent and 0.1 per cent falls in October and September respectively. At the peak of the market last year, average property values reached £293,992.
Homes in the capital are significantly more expensive, however, with typical residences costing £541,239 last month after increasing by 2.9 per cent over the last year.
Looking ahead, Lloyds Bank chief executive officer Charlie Nunn predicts house values will drop by ten per cent in 2023.
House price declines will help those looking for flats for sale in Hackney to get on the property ladder, making it easier to raise a deposit and get a mortgage.