Housing Crisis: What does it mean for Law Firms?

In short

Britain's housing market has finally blinked. Average UK prices in August were 0.4% lower than a year earlier, the first annual fall since November 2023, with the typical property costing £298,468, while economists polled by Reuters had expected a 0.2% rise.

What's going on

• Lloyds, a major UK mortgage lender, said its August index showed prices 0.4% below a year earlier, the first annual fall since November 2023.
• The average property cost £298,468, down £685 on July, with London and the south east leading the falls.
• Mortgage costs have climbed: the average two year fixed rate was 5.6% and the five year 5.66%, both under 5% at the start of the year.
• Mortgage approvals, the point at which a lender formally agrees to fund a purchase, were at their lowest since the start of 2024.
• Lloyds said sellers are refusing low offers and buyers are waiting, rather than cutting prices; one estate agent called it a standoff.
• Middle East tensions have stoked inflation fears and expectations of further rate rises.

How does this impact law firms?