The Halifax property index has revealed that average house prices in the UK experienced a monthly decline of 0.3 percent in July, making it the fourth consecutive drop this year. The areas

most affected by this downward pressure are the South East and Greater London, where some locations witnessed a significant decrease in property values, with prices falling by as much as £15,500 in the year leading up to July.

Despite the decline, there is some positive news as prices are dropping at a slower rate, and the first-time buyer activity remains robust, according to the Halifax House Price Index report.

Kim Kinnaird, the director at Halifax Mortgages, noted that the average UK house prices in July were slightly down, equivalent to a cash drop of around £1,000, and all four consecutive monthly decreases have been smaller than 0.5 percent. Over the last six months, property prices have remained relatively unchanged, with the typical property now costing £285,044 compared to £285,660 in February.

The report also indicated that the annual decline in house prices slowed to -2.4 percent in July, compared to -2.6 percent in June. This suggests that the housing market is showing resilience despite economic challenges.

However, the affordability squeeze may lead to a continued constraint in market activity, potentially resulting in further declines in house prices in the coming months. Ms. Kinnaird anticipates that the fall will be gradual rather than abrupt and is unlikely to fully reverse the house price growth recorded in recent years. Despite the challenges, average property prices still remain approximately £45,000 (19 percent) above pre-COVID-19 levels.