LONDON (Reuters) -British house prices in September were 5.3% lower than a year earlier, matching their fall in August which was the biggest annual drop since 2009, figures from mortgage lender Nationwide showed on Monday.
In month-on-month terms, prices were unchanged in September after a 0.8% fall in August, Nationwide said.
Britain’s housing market has slowed as borrowing costs mount, but the fall in house prices so far remains much less marked than their jump of about 25% between the start of the coronavirus pandemic and September last year.
The Bank of England last month kept the Bank Rate on hold after 14 back-to-back increases which could help to ease some of the pressure on people re-mortgaging or looking to buy a home, Robert Gardner, Nationwide’s chief economist, said.
The combination of rising wages and lower house prices and mortgage rates would probably improve affordability in the housing market over time although it was set to remain subdued in the interim, he said.
Transaction volumes for flats were holding up better than other property types, possibly reflecting how prices for smaller homes did not rise as much during the pandemic, Nationwide said.
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(Writing by William Schomberg, Editing by Louise Heavens, Kirsten Donovan)