British real estate prices have experienced an unexpected and sharp decline, marking the largest drop in 14 years, Invest-Gate reports.
In August, house prices in Britain fell by 5.3% compared to the same month the previous year, a much steeper decline than anticipated.
This decline has been attributed to the significant increase in interest rates, which has had a significant impact on the housing market and has been the subject of warnings in recent months.
The local newspaper “Evening Standard” in London reported that during August alone, house prices in Britain dropped by 0.8% compared to the previous month, doubling the earlier expectations of a 0.4% decrease.
James Briggs, head of intermediary sales at Together Properties, suggests that the lower house prices could be due in part to buy-to-let investors exiting the market, making more properties available for buyers who intend to live in them.
This increased supply has slightly alleviated demand, making housing more affordable. However, it remains uncertain whether this trend will persist or if it’s just a temporary blip in the market.
Experts predict that lenders will continue to compete for borrowers with strong affordability, while the specialist lending market will seek to assist those who do not meet standard criteria.
Overall, this decline amounts to an annual reduction of approximately £14,600 in the average price of a typical house in Britain, bringing the average price down to £259,153.