House prices fell 2.3pc in November, their biggest monthly drop since the global financial crisis in 2008.
The average sale price fell to £285,579 in November, down from £292,406 in October, according to Halifax, in the third largest drop since the lender’s records started in 1983.
It is the third consecutive month that house prices have declined. Over the quarter, house prices have fallen 1pc.
The figures confirm data published by Nationwide earlier this month.
It comes as interest rates reached 3pc, their highest level since November 2008, increasing borrowing costs for people seeking to take out a mortgage.
The annual rate of house price growth slowed to 4.7pc, from 8.2pc in October.
The Halifax figures showing a monthly fall in house prices add to evidence that housing market may be headed into a more protracted downturn.
Mortgage lender Nationwide Building Society last week said that home prices fell 1.4pc in November, which, excluding the pandemic, represents the fastest drop since the global financial crisis.
Mortgage rates soared above 6pc in the past few weeks, also the highest level since the global financial crisis, making it harder to get onto the property ladder.
While they have ticked just below that level in the past few days, they remain substantially higher than the near 1pc deals that were available in 2021.
The Bank of England has signalled it will continue to raise interest rates, prompting investors to anticipate a half-point increase to 3.5pc next week. Kim Kinnaird, director at Halifax Mortgages, said:
Some potential home moves have been paused as homebuyers feel increased pressure on affordability.
Industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilize.