Halifax says UK house prices set to fall next year by around 8%

LONDON (Reuters) – Mortgage lender Halifax said on Friday it expected British house prices to fall next year by around 8% as the increasing cost of living put more pressure on household finances and rising interest rates continued to push up mortgage costs.

“To put this into perspective, such a fall would place the average property price back at roughly the level it was in April 2021, reversing only some of the gains made during the pandemic,” Andrew Asaam, homes director at Halifax, said.

“There is still uncertainty around this forecast, with the trajectory for Base Rate (now expected to peak at 4%) and unemployment levels key to determining any future changes.”

(Writing by William Schomberg; Editing by Angus MacSwan)