"UK house prices have ended the year on a stronger footing and the outlook for pricing is much more optimistic now compared to this time last year where doomsayers were predicting a drop of around 10%"
- Kevin Roberts - Legal & General Mortgage Services
According to this morning's data, average UK house prices decreased by 1.2% in the 12 months to October 2023 (provisional estimate), down from a decrease of 0.6% (revised estimate) in the 12 months to September 2023.
Average house prices over the 12 months to October 2023 decreased in England to £306,000 (negative 1.4%), decreased in Wales to £214,000 (negative 3.0%), but increased in Scotland to £191,000 (0.2%).
Average house prices increased by 2.1% to £180,000 in the year to Quarter 3 (July to Sept) 2023 in Northern Ireland.
The North East was the only English region which saw an increase in average house prices in the 12 months to October 2023 (0.2%), while London saw the largest fall (negative 3.6%).
Kevin Roberts, Managing Director, Legal & General Mortgage Services comments: “UK house prices have ended the year on a stronger footing and the outlook for pricing is much more optimistic now compared to this time last year where doomsayers were predicting a drop of around 10%.
"In reality, the fall has been around half that, or less in some regional cities like Bristol, where roughly two-thirds of properties on the market in certain postcodes are currently under offer. House prices are very closely linked to interest rates, which have settled considerably as the year has gone on, dropping for twenty weeks on the bounce.
"Usually we would see a quieter few weeks in the immediate run-up to Christmas, but buyers have pleasantly surprised us by remaining very active. The important takeaway for anyone looking to bag a new home as an early Christmas present is to speak to an expert adviser, who can explain the nuanced outlook for your situation, in your area, and for your property type in detail.
"The market remains price-sensitive, but there are good deals to be found, particularly if guided by a qualified adviser.”
Nathan Emerson CEO Propertymark comments: “Throughout 2023 higher interest rates have affected mortgage affordability, which has been a contributing reason why prices dropped in the 12 months to October.
"Propertymark’s latest Housing Insight Report found that there has been a 13 per cent decrease in the number of potential homebuyers registered at each member branch. Though the Bank of England has said it has no intention to raise interest rates for now by keeping them at 5.25 per cent, the UK Government should further focus on the task of slashing inflation to meet the Bank of England’s target of 2 per cent.
"Interest rates will likely fall in the long-term, thereby reducing borrowing costs for homeowners, and we should finally see market confidence return to what is was prior to Covid-19.”
