House prices may be falling – but the market’s underlying problems remain

Prices remain elevated while the government continues to stoke demand by failing to address the shortage of supply, argues James Moore

House prices dropped 0.4 per cent last month (PA Wire)

Pained would-be house purchasers could be forgiven for asking “what took so long?” in response to the latest Halifax house price index.

It shows that the market is finally catching up with the economic situation being endured by people trying to get on the first rung of a ruinously expensive ladder.

Prices fell by 0.4 per cent in October versus 0.1 per cent in September, which mightn’t look like much until you consider that it marks the sharpest monthly fall recorded since the pandemic-affected February of 2021. It is also the third fall in prices recorded in four months and takes the average to a five-month low of £292,598.