The average house price in the UK fell by 0.1 per cent in June, the consecutive month of decline and the largest such fall since June 2011., according to <a href="https://www.thenationalnews.com/world/uk-news/2023/04/06/halifax-uk-house-price-growth-weakest-in-more-than-three-years/" target="_blank">Halifax</a>. Property values fell by 2.6 per cent annually across the UK, equating to around £7,500 being wiped off the average UK house price in cash terms. The average house price in June was £285,932 ($365,382), Halifax said. Halifax said the drop in house prices was largest in the south east of England. Kim Kinnaird, director of Halifax Mortgages, said the large annual drop largely reflected the comparison from a peak in house prices seen about a year ago, with relatively little movement in prices over the past few months. But soaring mortgage costs – spurred by rising expectations for Bank of England interest rates as it battles inflation – pointed to weaker months ahead, she said. "How deep or persistent the downturn in house prices will be remains hard to predict," Ms Kinnaird said, adding that falling inflation could offer some support. "With markets now forecasting a peak in Bank Rate of over 6 per cent, the likelihood is that mortgage rates will remain higher for longer, and the squeeze on household finances will continue to put downward pressure on house prices over the coming year." Alice Haine, personal finance analyst at DIY investment platform Bestinvest, said the property market had succumbed to the heavy blow dealt by surging borrowing costs. "A steeper annual decline hinted at the challenges ahead as affordability gets squeezed by rapidly rising mortgage rates and more sellers are forced to slash the asking price on their homes to secure a sale," she said. Financial markets expect interest rates to peak as high as 6.5 per cent by next spring, with both two and five-year fixed rates now averaging above the 6 per cent mark. Some of the UK's <a href="https://www.thenationalnews.com/world/uk-news/2023/06/23/uk-lenders-pledge-to-help-with-anxieties-in-face-of-mortgage-time-bomb/" target="_blank">biggest mortgage lenders</a> have held meetings with Chancellor Jeremy Hunt to discuss what can be done to help struggling homeowners. Ms Haine said: "House-price falls have been relatively muted so far, with the property market proving resilient despite 13 interest rate rises since December 2021 as the Bank of England battles to tame high inflation. With the central bank now under fire for failing to act fast enough to tackle the inflation threat, the ensuing mortgage crisis is likely to change that scenario in the coming months as house price growth faces a significant drag from higher interest rates." Mark Manning, MD of Northern Estate Agencies Group, which has branches across Yorkshire, Lancashire and North Derbyshire said: “One of the big trends we observed In June was the growth in the number of properties coming to market… it seems clear that some sellers are seeing a greater choice of properties to buy which contributes to their decision to move.” Jeremy Leaf, a north London estate agent, said: “On the ground, sales are still proceeding often to those who are not dependent on mortgage finance but they are taking longer and often involve protracted renegotiations, resulting in modest, rather than large, price falls.” Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “There is growing appetite from borrowers for shorter-term fixes and penalty-free trackers in the hope that this volatility in the market will be relatively short-lived.”