UK house prices fall for first time this year as Middle East crisis hits confidence – business live

Key events Show key events only Please turn on JavaScript to use this feature UK house prices fall: What the experts say Here’s some snap reaction to the news that UK house prices dropped last month for the first time this year : Tom Bill , head of UK residential research at Knight Frank : double quotation mark “This is further evidence that the housing market slowed down at precisely the time of year when you would expect momentum to be building. There won’t be a cliff-edge moment, but the impact of higher borrowing costs will erode spending power and squeeze house prices this year as mortgage rates agreed before the Middle East conflict gradually disappear. With the Bank of England likely to sit on its hands for the foreseeable future, we expect minimal house price growth in 2026, with uncertainty around the Budget and ideological direction of the government likely to keep a lid on activity.” Nathan Emerson , CEO of Propertymark , comments: double quotation mark “Stable house prices will be welcomed by many buyers and sellers looking for greater certainty in the market after a prolonged period of economic volatility. Buyers who need to move are continuing to act decisively, particularly where mortgage rates have stabilised, and supply levels remain constrained. “Many households are continuing to carefully assess affordability before making decisions, particularly as mortgage costs remain higher than many borrowers have become accustomed to over recent years. …