Owner of Halifax, Lloyds Banking Group, projects that prices will fall by 2.4% in 2024 and 4.7% this year, respectively, before rising.

Lenders have attributed a slowdown in home sales to increased borrowing costs.

However, average home prices are still around £40,000 higher than they were during the peak of the COVID-19 pandemic, when demand for more space drove up prices.

Lloyds announced on Wednesday that although prices would decline in the next two years, they would grow steadily over the long run, increasing by 0.6% by 2027.

A series of rate increases intended to combat skyrocketing consumer prices have led to interest rates reaching their highest point in 15 years, which is currently at 5.25%.

Lenders have increased their borrowing rates as a result, including for mortgages. The most recent data indicates