Buyers’ joy as property prices set to fall up between two and four per cent next year

PROPERTY prices are set to fall between two and four per cent next year, according to one of the country’s biggest mortgage lenders.

Halifax figures show the average house price is now £283,615 — just one per cent less than in 2022 despite high interest rates.

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Kim Kinnaird, director of Halifax mortgages, said: “Higher interest rates, and the resulting squeeze on affordability, gave many potential home buyers pause for thought when considering making a move over the last year.”

“But with the combination of cost-of-living pressures and interest rate levels that are still much higher than even two years ago, we will likely see continued mild downward pressure on house prices.

“Our latest forecast suggests a fall of between two and four per cent in the next year.”

Even with that drop, house prices will still be up significantly on their pre-pandemic levels.

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House prices boomed as lockdowns lifted amid a rush of people wanting to move out of cities and buy bigger homes and gardens.

But high interest rates have now pushed up mortgage costs, making it harder for buyers to get an affordable home loan.

And mortgage approvals fell by a quarter this year — the lowest level in a decade, according to Halifax.

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