UK sees biggest fall in housing prices since 2009 financial crisis according to Halifax report

Housing prices in Britain fell during the last month of 2022, with prices in December reaching record lows. The quarterly drop in housing prices has not been seen since the financial crisis more than 10 years ago, according to Halifax.

The average house price fell by 1.5% in December, compared to 2.4% the previous month. The drop saw the fourth consecutive fall in housing prices, according to Halifax, and means the total fall is 2.5% in the year’s last quarter.

The last time housing prices saw a fall of 2.5 was the three months to February 2009, in the midst of the financial crisis. The cost of living crisis has also seen a major slowdown on the market, with fewer mortgages being approved than expected.

Kim Kinnaird, Director of Halifax Mortgages, said: “In December, the cost of the average UK home was £281,272, a fall on the previous month of 1.5%, with annual growth slowing to +2% (from +4.6%). However, the fall in December was lower than the monthly decline of 2.4% recorded in November, even taking into account seasonal slowdown driven by the festive period.