UK house prices record first drop this year

Housing prices in the UK decreased by 1.3 percent in August, the first drop of the year.

Real estate platform Rightmove reported that house prices in the UK fell by 1.3 percent in August this year, to an average of £365,173.

Tim Bannister, Director of Housing Studies at Rightmove, said, “After two years of strong upward trend in housing prices, a decrease was expected as of this month, with a return to the natural seasonal structure. Many people planning to move house are distracted by summer vacation.” used his statements.

Bannister stated that despite the increasing economic uncertainties, housing prices in the country are expected to gain an average of 7 percent by the end of this year.

Highest rate hike in 27 years from Bank of England

With the increase in the monetary policy rate in the UK, housing loan rates are expected to continue their upward trend.

The Bank of England (BoE) announced on August 4 that the bank decided to raise the policy rate by 0.50 basis points to 1.75 percent.


In order to contain the rising inflation, the bank had signed the highest interest rate increase at once since 1995 .

According to data from British financial data provider and research platform Moneyfacts, the average five-year fixed-rate mortgage in the country has already exceeded 4 percent.


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