UK house prices fall at steepest rate in more than three years

October drop of 0.6% leaves average price of property at £296,285, says Lloyds, as high mortgage rates hit market

UK house prices fell at the steepest rate in more than three years in October, marking the fourth consecutive monthly decline, as high mortgage rates hit the housing market.

The average price of a typical UK property stood at £296,285 last month as prices unexpectedly fell 0.6% compared with September, the steepest fall since the lender Lloyds recorded a 1.6% drop in August 2023.

Analysts had expected a small monthly rise of 0.1%, which would have marked the first monthly increase since June.