UK house prices take a dramatic drop

UK house prices take a dramatic drop

0:02 AM, 14th December 2023, About 12 months ago

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House prices in November took a downward shift with a decrease of 4.6%.

According to Acadata House Price Index, completed home transactions using cash or mortgages in England and Wales are at their lowest level in 17 years.

The dramatic drop follows 15 months of gradual decline, from a peak growth rate of +12.7% in August last year.

Headline figure is far more nuanced

On a monthly basis house prices have fallen by some -£2,500, or -0.7%, in November 2023. The current average house price has now dropped to levels last seen in January 2022.

Richard Sexton, director at e.surv, said: “Our report uses both mortgage and cash data in its assessment of the England and Wales housing market. On an annual basis, the average sale price of completed home transactions using cash or mortgages in England and Wales in November 2023 fell by some £17,250, or -4.6%, and now stands at £358,337.

“This drop follows almost fifteen months of slow decline, from a peak growth rate of +12.7% in August 2022. But as with all averages the picture beneath the headline figure is far more nuanced.”

Mr Sexton adds that despite the decline there have been some price highs in the property market but they are few and far between.

“The differing changes in price growth across England and Wales reflect the diverse nature of the property markets across both countries.

“When we look at what’s happening on a monthly basis, there were two of the ten government regions with price increases, namely the North West, +0.5%, and the North East, +0.3% and eight with price falls – the largest being Yorkshire and the Humber at -1.2%, with the East Midlands, the East of England, and the South East each at -1.1%.”

Predictably little in the Autumn Statement

Mr Sexton continues that the Autumn Statement did not provide much to mull over for the property market.

He said: “While we were ever hopeful last month, there was predictably little in the Autumn Statement for the market which needs more fundamental thinking than a short-term shot in the arm.

“The government is still keen to avoid fuelling inflation with housing giveaways but, given the possibility of an election in Spring next year, it’s likely measures short-term or otherwise have been held back till the March 2024 Budget.”


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