UK August house prices fall 0.4% year-on-year, first decline since November 2023

⑴ Data shows that UK house prices in August fell by 0.2% month-on-month and 0.4% year-on-year, marking the first year-on-year decline since November 2023. ⑵ Economic uncertainty has caused potential homebuyers to wait and see; data from last week shows that the number of mortgage approvals dropped to the lowest level since the start of 2024. ⑶ The current average house price is £298,500, lower than July's £299,200. ⑷ The head of Lloyds Bank's mortgage business stated that the market is expected to remain rather subdued in the coming months, but the impact on house prices may be limited, as continued wage growth and better-than-expected employment will support buyers looking to move.