LONDON (dpa-AFX) - UK house prices declined for the third straight month in October, marking their quickest in three years, data published by Lloyds Banking Group showed Friday.
House prices dropped 1.2 percent on an annual basis in October, faster than the 0.1 percent slight decrease in September. That was faster than the 0.3 percent decline expected by economists. Moreover, this was the steepest decrease since October 2023.
On a monthly basis, house prices dropped 0.6 percent, following a 0.1 percent fall in the prior month. Meanwhile, economists had expected an increase of 0.1 percent.
The average property price is now GBP 296,285 in October, compared to GBP 298,167 in September.
Weaker housing demand was due to renewed inflationary pressures, driven in part by the conflict in the Middle East, keeping borrowing costs high and adding to the squeeze on household finances, making some buyers understandably more cautious.
'Looking ahead, conditions are likely to remain subdued in the near term, but we don't expect this to lead to a sustained period of falling house prices,' Andrew Asaam, Mortgages Director at Lloyds, said.
'With wages continuing to rise faster than property prices, the gap between earnings and house prices should gradually narrow, helping affordability to improve over time.'
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