UK house prices defied crash predictions in 2023, new data shows

UK house prices defied crash predictions in 2023, new data shows

0:04 AM, 26th February 2024, About 2 months ago 1

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Despite predictions of a UK house price crash in 2023, new data shows that prices were resilient.

The UK house price index from the estate agents Yopa reveals how the property market fared despite the cost-of-living crisis and higher interest rates.

The data shows that the average national price was largely unchanged, with a minor dip of -0.3% between January and December.

‘Predicted by many to endure dramatic price drops’

Yopa’s chief executive, Verona Frankish, said: “In 2023, the UK housing market was predicted by many to endure dramatic price drops as the nation continued to endure the cost-of-living crisis, made all the worse with an increased cost of borrowing.

“But while a reduction in buyer demand certainly led to cooler conditions than we have seen in previous years, the result was a largely static market, not one in free fall.”

She added: “Furthermore, we see once again that diagnosing market health with the broad stroke of national averages fails to tell the whole story.

“Our nation is made of hundreds of local markets, and within many of them, prices have soared.”

Local variations in house price performance

The data also shows the regional and local variations in house price performance and on a regional level, there was an even split between those that saw prices rise and fall.

Scotland was the top performer, with the average house price increasing by 4.2%, followed by Northern Ireland (3.4%), the North West (3.2%), the West Midlands (1.5%), Yorkshire and Humber (1.3%), and the East Midlands (0.6%).

The regions that saw prices decline were Wales (-0.2%), the North East (-0.9%), the South West (-1.5%), the East of England (-2.5%), the South East (-3.9%), and London (-5.2%).

London suffered the most dramatic price drop in the country, with almost -£27,000 wiped off the average house price, which ended the year at £508,037.

The four worst-performing areas

London also accounted for the four worst-performing areas with the City of Westminster seeing the biggest decline of -20.9%, followed by Kensington and Chelsea (-17.4%), the City of London (-16.7%), and Hammersmith and Fulham (-13.3%).

The rest of the 10 worst-performing areas were in the south of England, and included Gosport in Hampshire (-12.9%), Runnymede (-11.3%), Torridge (-9.8%), Welwyn Hatfield (-9.3%), Thanet (-9.2%), and the Forest of Dean (-8.7%).

However, not every area of the market struggled, with some posting impressive house price growth – the best performance came from West Lancashire, where values increased by 10.7%, followed by South Hams and East Renfrewshire, both with 10.1% growth.

The other areas in the top 10 best-performing areas were Rossendale (10%), Winchester (9.5%), Derry City & Strabane (8%), Mole Valley (7.5%), Cumberland (7.3%), East Lothian (7.3%), and Midlothian (7.2%).

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Cider Drinker

13:55 PM, 26th February 2024, About 2 months ago

So, house values have fallen by more than the rate of inflation?

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