First dip in house prices since 2012 just the start'

THE first annual house price drop since 2012 has been recorded - and the situation will keep getting worse for homeowners, experts have warned.

- Sarah O'Grady

The fall of one percent year-on-year mirrors the drop in mortgage lending to its lowest levels since lockdown.

A typical UK property now costs £286,532, down from £286,662 in April, Halifax said.

A further drop in values of 5 percent, which would lop £14,327 off a three-bedroom semi's price, has been forecast.

Property values have now shrunk by £3,000 over the last 12 months and by £7,500 since last August's peak.