In the UK, the average cost of a home dropped to £278,601 last month, compared to £292,197 in September 2022. This represents a 0.4% decrease from August and marks the 6th consecutive decline. Nationwide has reported that this is the sharpest drop in house prices since 2009, following the 2008 credit crunch. However, the decrease was smaller than the 1.8% drop between July and August. So, why are house prices falling?
The UK is still grappling with the cost of living crisis, which may lead to accepting lower offers for homes or a higher demand for affordable housing, thereby impacting the housing market.

The persistently high cost of borrowing is also a contributing factor. Kim Kinnaird, the director of Halifax mortgages, highlighted the influence of higher interest rates on mortgage affordability as the primary reason for the current buyer’s market.
Therefore, if you are considering property investment, this could be an opportune time to take action, especially if you are a first-time buyer unaffected by the need to sell a current home at a good price.