House prices fall at fastest pace since 2009 – and more pain expected

Gloomy forecasts follow 4.6% year-on-year drop as higher interest rates hit the property market

A jogger runs past houses
Sellers are being forced to ‘adjust their expectations’
(Image credit: Jason Alden/Bloomberg via Getty Images)

High interest rates and the customary summer slump have been blamed after UK house prices suffered their sharpest annual drop in 14 years.

Prices fell by 4.6% in August, the biggest year-on-year decrease since 2009, according to data released by Halifax. Rival lender Nationwide last week put the drop at 5.3%.

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  Chas Newkey-Burden has been part of The Week Digital team for more than a decade and a journalist for 25 years, starting out on the irreverent football weekly 90 Minutes, before moving to lifestyle magazines Loaded and Attitude. He was a columnist for The Big Issue and landed a world exclusive with David Beckham that became the weekly magazine’s bestselling issue. He now writes regularly for The Guardian, The Telegraph, The Independent, Metro, FourFourTwo and the i new site. He is also the author of a number of non-fiction books.