UK house prices drop again as Halifax says first-time buyers are switching to smaller homes

Halifax expects a gradual fall in house prices, rather than a ‘precipitous decline’. Photograph: Maureen McLean/Shutterstock

The average UK house price has fallen for the fourth month in a row, according to Halifax, which says higher borrowing costs are increasingly pushing first-time buyers to switch to smaller homes.

The average price fell by 0.3% in July, the bank’s monthly index showed, with a typical UK home costing £285,044, compared with a peak of £293,992 last August.