UK house prices fall at fastest pace since 2020 amid fallout from mini-budget

Nationwide warns inflation and rising interest rates will weigh down housing market

UK house prices fell last month at their fastest rate for two and a half years as the fallout from Liz Truss's disastrous mini-budget put buyers off, according to Nationwide which warned inflation and rising interest rates would weigh on the market in the coming months.

The price of an average home dropped 1.4% to 263,788 in November, according to the building society's house price index, accelerating a slowdown that saw prices fall 0.9% in October. It was the third monthly decline in a row, and the biggest drop since June 2020.