UK House Prices Drop for First Time in Six Months Amid Mortgage Rate Concerns

The latest Halifax index reveals a 1% decrease in house prices in March, marking the first decline after half a year of growth, as mortgage rates rise and affordability becomes a key issue.

House prices in the UK fell by 1% in March, the first decline after five consecutive months of growth, according to Halifax.
The average UK house price now stands at £288,430, down £2,900 from February.
Economists say the stall in house prices is due to a slight increase in mortgage rates since the beginning of March, with expectations of further rate cuts by the Bank of England being scaled back.
Affordability remains a major challenge for buyers, with rising mortgage rates and higher borrowing costs impacting the market.
Despite the recent dip, house prices are still 0.3% higher compared to the same time last year, with underlying demand and a strong labor market expected to support prices.