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‘Mini-budget’ fallout hits UK house prices in October – Halifax
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LONDON (Reuters) -British house prices fell in October at the fastest monthly rate since February 2021, a fresh sign of weakness in the housing market that reflects the fallout from the September “mini-budget”, mortgage lender Halifax said on Monday.
LONDON (Reuters) -British house prices fell in October at the fastest monthly rate since February 2021, a fresh sign of weakness in the housing market that reflects the fallout from the September “mini-budget”, mortgage lender Halifax said on Monday.
House prices dropped 0.4% month-on-month last month, after a 0.1% fall in September, Halifax said.
It said the slowdown was in part a consequence of the Sept. 23 economic agenda of former Prime Minister Liz Truss, known as the mini-budget, which sent British financial markets into a free-fall.
“While a post-pandemic slowdown was expected, there’s no doubt the housing market received a significant shock as a result of the mini-budget which saw a sudden acceleration in mortgage rate increases,” said Kim Kinnaird, director of Halifax Mortgages.
In annual terms, house prices were 8.3% higher in October, slowing from 9.8% in September.
(Reporting by Andy Bruce; editing by James Davey)
A house price index measures the relative changes in the price of residential properties over time, providing insights into market trends and property value fluctuations.
Mortgage rates are the interest rates charged on a mortgage loan, which can fluctuate based on economic conditions and the borrower's creditworthiness.
Economic growth refers to the increase in the production of goods and services in an economy over a certain period, typically measured by GDP.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives.
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