British house prices have witnessed a notable decline, falling by 1.8% in the 12 months leading up to December, marking the most substantial annual drop since the 2008 global financial crisis, as reported by mortgage lender Nationwide on Friday.
Contrary to a Reuters poll of economists, which anticipated a 1.4% decrease, the actual figures reveal a more significant dip in housing prices.
Examining month-on-month data, December exhibited no change in prices compared to November. The once-thriving UK housing market, which experienced a surge during the COVID-19 pandemic, is now grappling with the impact of elevated borrowing costs following the Bank of England’s decision to raise interest rates as part of its efforts to curb inflation.