Warning to anyone buying or renting a house amid property market crash fears

Property experts are issuing a warning to homeowners amid fears a housing market crash is imminent. It comes after almost £1,000 was wiped off the average UK house price between June and July, according to Halifax.

In the bank's latest house price index, it reported that the average property value in the UK fell by by 0.3 per cent in July, marking the fourth monthly decline in a row. House prices have also now dropped by 2.4 perc ent annually, with the typical home now costing £285,000 - down from a peak of £294,000 last August.

In line with the cost of living, tenants have seen their monthly rent costs soar as landlords try to cover their increased cost after interest rates have continued to rise. The base rate is now 5.25 per cent after the Bank of England raised it to a 15-year high in a bid to bring down inflation.

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Kate Anderson, deputy editor and housing expert at personal finance comparison site Finder, said both homeowners and renters need to be wary of a potential crash.

“It's worrying to see yet another decline in house prices this month, as the UK sits on the cusp of a housing market crash, the risks of which will have only been heightened by the most recent base rate hike which threatens to push house prices down even further," Kate said.

"It’s likely that we’re going to face big issues with the buy to let market, and the impact that the rising cost of borrowing will have on renters. Landlords may find it unprofitable to continue due to increasing interest rates and sell up, creating further downward pressure on house prices and leaving renters with even fewer options."

But Kim Kinnaird, director of Halifax