London: UK house prices fell sharply for the first time in 11 years, as extra borrowing costs weighed on buyers, according to data released by British lender Halifax Bank.
Halifax said average house prices fell 1 percent in May compared to June last year, while their overall market rates fell by 7,500 British pounds ($9,330) this month compared to August.
Halifax director Kim Kinnaird said higher interest rates have hit house prices because the effects of higher interest rates are slowly trickling down to household budgets, and those with fixed-rate mortgages are particularly hard hit. Loan deals are about to expire.
It should be noted that the Organization for Economic Cooperation and Development (OECD) has said that it is expected that the inflation rate in the country will decrease to 2.8 percent in 2024 compared to Germany and France.
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