LLOYDS RECORDS 1.2% ANNUAL FALL IN UK HOUSE PRICES

UK house prices fell by 1.2% in the year to October, according to the Lloyds house price index. Lloyds put the average property price at £296,285 and recorded a monthly decline of 0.6%. The lender described the annual fall as the largest since October 2023. Greater London recorded the largest annual regional decline in the index, with prices falling by 3.1% to an average of £524,892.

Lloyds recorded annual growth of 4.4% in Northern Ireland, the highest rate across the UK, compared with 6.9% a month earlier. Its figures put annual growth in Scotland at 2.8% and Wales at 1.6%. Only three English regions recorded annual increases: the North West at 2.2%, the North East at 2.0% and the West Midlands at 0.3%. The index recorded annual falls of 2.4% in both the South East and South West.

Andrew Asaam, mortgages director at Lloyds, said: “Housing demand is currently being tested by a challenging economic backdrop.” He attributed pressure on household finances to high borrowing costs and renewed inflationary pressures, driven partly by the conflict in the Middle East. Prospective homeowners and housebuilders anticipate the launch of the government’s relaunched Help to Buy scheme in April next year, offering equity loans to help first-time buyers meet deposit requirements. Housebuilders and property specialists have criticised the launch timetable and the scheme’s £650,000 limit on inner London properties.