UK borrowers who levered up on debt to get up on that housing ladder are about to experience severe rectal trauma as Housing Bubble 2.0 is bursting worldwide

"Coming Back To Earth": UK House Prices Book First Annual Drop Since 2012 t.co/IFHbSaM10x

— zerohedge (@zerohedge) June 8, 2023

UK house prices recorded their first annual contraction in May, attributed to affordability crisis.

Lender Halifax published a new report showing UK house prices recorded their first annual contraction in May in over a decade. The decline was attributed to an affordability crisis faced by buyers. A price reversal signals the possibility the housing boom has come to an abrupt halt.

“House prices were largely unchanged in May, edging down very slightly (-£130) compared to April, with the average UK property now costing £286,532. More notably, the annual rate of growth fell to -1.0%, marking the first time since 2012 that house prices have fallen year-on-year. Given the effectively flat month, the annual decline largely reflects a comparison with strong house prices this time last year, as the market continued to be buoyant heading into the summer,” Kim Kinnaird, the director at Halifax Mortgages, wrote in the report.

Kinnaird said, “Property prices have now fallen by about £3,000 over the last 12 months and are down around £7,500 from the peak in August. But prices are still £5,000 up since the end of last year, and £25,000 above the level of two years ago.”

www.zerohedge.com/markets/coming-back-earth-uk-house-prices-book-first-annual-drop-2012

h/t Simian_Stacker