According to the UK's largest mortgage lender, house prices have decreased by 1% from a year ago, marking the first decrease of this magnitude since 2012.
According to The Halifax, a division of Lloyds Banking Group, the average price of a home in May was £7,500 less than it was in August at its peak and was down £3,000 from a year earlier.
The lender, who is also raising mortgage rates, claimed that increased borrowing costs were harming "confidence.".
Recent weeks have seen a sharp increase in some mortgage rates.
Due to general price increases -- as measured by inflation -- remaining higher for longer than initially anticipated, lenders are projecting further increases in the Bank of England's base rate.
As buyers and sellers adjust their expectations, this will unavoidably affect confidence in the housing market, according to Kim Kinnaird, director of Halifax Mortgages, who also noted that housing demand was cooling.
"As a result, more downward pressure on home prices is still anticipated. ".
According to The Halifax, the typical UK home now costs £286,532. According to the statement, prices have slightly decreased from one month prior. The market's strength a year ago was a major factor in the decline year over year, it claimed.
According to data from rival lender The Nationwide, home prices have decreased even more. It stated a week ago that the largest decline in property values in 14 years occurred in the year ending in May, falling by 3 point 4 percent.
First-time buyers might rejoice in that, but unexpectedly high mortgage rates are limiting their ability to purchase.
