Still falling...

On a seasonally adjusted basis, the average UK house price decreased by 0.5% in July 2023, following a month-on-month increase of 0.7% in June 2023.

“August saw a further softening in the annual rate of house price growth to -5.3%, from -3.8% in July, the weakest rate since July 2009. Prices fell by 0.8% over the month, after taking account of seasonal effects. “The softening is not surprising, given the extent of the rise in borrowing costs in recent months, which has resulted in activity in the housing market running well below pre-pandemic levels.

“Expectations of further Base Rate increases from the Bank of England were tempered by a better-than expected inflation report for June. However, while there have been recent signs of borrowing costs stabilising or even falling, they will likely remain much higher than homeowners have become used to over the last decade."

At its meeting ending on 2 August 2023, the MPC voted by a majority of 6–3 to increase Bank Rate by 0.25 percentage points, to 5.25%. Two members preferred to increase Bank Rate by 0.5 percentage points, to 5.5%, and one member preferred to maintain Bank Rate at 5%.

Headlines: Monthly Index: 517.8 Monthly Change: -0.2% Annual Change: -3.8% Average Price (not seasonally adjusted) £260,828

House prices fall 0.4% MoM when seasonally adjusted. (0.00% non S.A). London falling 1.2% MoM.

YouTube video showing lending falling but mortgage spreads are low.

'Real' prices peaked in 2022 Q1 @ £305,361. They are now £261,995 having fallen £43,366.

London suffers more than the rest of the country in June as asking prices, which normally are buoyant at this time of the year, take a tumble.