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Property Market Sees Biggest House Price Drop Since 2008

The property market has experienced the largest drop in house prices for 14 years, falling by 2.3 per cent in November.

According to the latest Halifax House Price Index, this is the third consecutive month of declines, bringing the average value to below what it was in April. It also represents the biggest decline since October 2008.

Halifax Mortgages’ director Kim Kinnaird said: “This month’s fall reflects the worst of the market volatility over recent months.”

The average house price in the UK stood at £285,579 in November, which is just £13,000 more than the year before.

However, Ms Kinnaird noted huge increases prior to this, with values typically being more than £46,000 above pre-pandemic levels.

“The market may now be going through a process of normalisation,” she stated, reminding the public the property market recently underwent the biggest boom in history.

It remains unknown what next year could bring, with the financial expert saying household finances, the supply of properties for sale, mortgage rates, and the wider economy will impact house prices in 2023.

Although the tumultuous state of the market has deterred some vendors and buyers, Zoopla recently reported agents currently have the greatest stock level in two years.

They typically have 23 homes for sale, which is the highest since January 2021, giving homebuyers more choice and adding greater competition to the market.

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