Average cost of a UK home falls at fastest rate in more than 12 years with values £6000 lower than last year

Wednesday 17 January 2024

The average cost of a home has fallen at its fastest rate for more than 12 years, with UK property values sitting typically £6,000 lower in November 2023 than a year earlier, according to official figures.

House prices fell by 2.1% over the 12 months to November 2023 to reach £285,000 on average, the Office for National Statistics (ONS) said.

Aimee North, head of housing market indices at the ONS, said: “The annual fall in house prices continues to accelerate, with the average cost of a home falling at its fastest rate for over 12 years.

“Meanwhile annual rent increases remain at record levels across the country.”

House prices typically fell across the year in England and Wales, but increased in Scotland and Northern Ireland.

House prices fell by 2.1% over the 12 months to November 2023 to reach £285,000 on average.

London saw the biggest drop in average house prices, down by 6%.

Average house prices over the 12 months to November 2023 decreased in England to £302,000 (a 2.9% drop) and fell in Wales to £213,000 (down 2.4%).

Within England, the North East recorded the smallest decrease in average house prices in the 12 months to November 2023 (falling by 0.4%), while London saw the biggest drop in average house prices (down by 6.0%).

Mortgage rates have been falling in recent weeks, with many lenders starting the new year by chopping rates. But some housing market experts said the acceleration in inflation could mean lenders are more cautious, as expectations of a Bank of England base rate cut are pushed back.

Frances McDonald, director of research at property agents Savills, said: “Today’s ONS house price index for November indicates that stretched mortgage affordability continued to place downward pressure on house prices in the final weeks of 2023.

“Looking ahead, there are encouraging signs that buyers are gaining confidence as mortgage rates fall, though today’s surprise inflation figures may push out expectations of a Bank of England base rate cut.”

The ONS also said private rental prices paid by tenants in the UK rose by 6.2% in the 12 months to December 2023.

This was unchanged from the annual percentage change in the 12 months to November 2023, and the joint-highest annual percentage change since the UK records started in January 2016.

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