UK house prices fell for a fourth straight month in July as mortgage rates rose further, making homebuyers less affordable, according to data from Halifax, Britain’s largest mortgage lender, suggesting that the Bank of England‘s 14 consecutive interest rate hikes to curb inflation are taking the toll. Consumers are even more stretched financially.
Halifax director Kim Kinnaird said: “The ongoing affordability crunch means market activity will continue to be constrained and we expect house prices to continue to fall over the next year, with this expected to be a gradual rather than a steep decline.
Despite recent signs of stabilizing or even falling borrowing costs, they are likely to remain well above what homeowners have been used to over the past decade. “
