UK house prices rise for third consecutive month
- Average house prices rose by +1.1% in December, the third monthly rise in a row
- Property prices grew +1.7% overall in 2023
- Typical UK home now costs £287,105, just over £3,000 more than last month
- House prices predicted to fall by between -2% and -4% in 2024
- South East England continues to see most downward pressure on house prices
Kim Kinnaird, Director, Halifax Mortgages, said:
“The housing market beat expectations in 2023 and grew by +1.7% on an annual basis. The average property
price is now £4,800 higher than it was in December 2022. Whilst it’s encouraging that we saw growth in the last
three months of the year, this was preceded with property price falls for six consecutive months between April
and September. The growth we have seen is likely being driven by a shortage of properties on the market,
rather than the strength of buyer demand. That said, with mortgage rates continuing to ease, we may see an
increase in confidence from buyers over the coming months.”
“Across all the UK regions, Northern Ireland recorded the strongest house price growth on in 2023, properties
here increased by +4.1% to £192,153. Scotland saw property prices increase by +2.6% to £205,170. At the
other end of the scale, the South East fell most sharply, houses here now average £376,804 (-4.5%), a drop of
–£17,755.”
“As we move through 2024, the UK property market will continue to reflect the wider economic uncertainty and
buyers and sellers are likely to be naturally cautious when considering making a move. While wage growth is
now above inflation, helping to ease cost of living pressures for some and improving housing affordability,
interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of
England’s target. Our latest forecast suggests house prices could fall between -2% and -4% during the coming
year, although, as with recent years, forecast uncertainty remains high given the current economic climate.”
Read the full report for more insights on the current state of the UK housing market: Halifax Price Index December 2023
Source: Halifax
