UK house prices plunge 0.6% in October as mortgage rates surge
Lloyds Banking Group said UK house prices fell 0. 6% in October, the sharpest monthly drop in three years, as higher mortgage rates tied to the Iran conflict weighed on demand. The Guardian had earlier reported that more than 2.
3 million households were expected to see mortgage payments rise when fixed-rate deals ended, amid an anticipated Bank of England rate increase and higher energy costs. The Bank of England later lifted its base rate, raising monthly payments for tracker and standard-variable-rate mortgage borrowers, while savers saw modest gains, the Guardian noted. Savills forecasts, cited by the Guardian and the Telegraph, project a continued decline in house prices through 2027 with only a modest rebound in the second half of 2028, attributing the pressure to higher mortgage rates linked to the Iran conflict.
