Potential buyers looking to buy a conventional home will continue to face higher mortgage payments.

The 1.1% year-on-year fall in UK house prices is the first annual decline in values ​​since June 2020, the month the market opened up following Covid restrictions. Home prices fell 0.5% in February compared to January. This marks the 6th month in a row they have fallen, according to the building society’s regular survey.

The average property price fell to £257,406, almost £900 lower than in January. UK house prices are now 3.7% lower than they were at their peak in August 2022.

Although mortgage rates have stabilized in recent months, they remain well above the lows recorded in 2021. Market players expect the labor market to weaken in the coming months, which will create greater uncertainty for potential home buyers.

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