House prices fell at their fastest annual rate in 14 years in August as rising mortgage rates affected the market. ‘We may be seeing a greater impact from higher mortgage costs flowing through to house prices,’ said the Halifax director of mortgages. ‘The market will continue to rebalance until it finds an equilibrium where buyers are comfortable with mortgage costs in a higher range than seen over the previous fifteen years.’ First-time buyers have welcomed a fall in prices but face relatively high repayment costs, alongside other cost-of-living pressures such as higher prices in the shops. On the flip side, wage growth has helped affordability. Despite the fall in property values, the Halifax said that prices were only back to the level seen at the start of last year, and still £40,000 higher than before Covid.