Average UK house prices rose by +1.1% in December 2023, according to the Halifax House Price Index, with the typical home now costing £287,105
Average UK house prices rose by just over £3,000 more than last month, according to the latest Halifax House Price Index.
Whilst property prices grew by +1.7% overall in 2023, the outlook is poorer for 2024, with prices predicted to fall by between -2% and -4% in 2024.
Northern Ireland prices continue to grow, whereas South East England is flagging
Property prices in Northern Ireland increased by +4.1% on an annual basis, now costing an average of £192,153(£7,595 higher than the same time in December 2022).
Scotland recorded growth as well, with the average price +2.6% higher at £205,170.
North West (+0.3%), and Yorkshire and Humber(+0.1%) saw modest house price increases over the last year.
Unsurprisingly, London had the highest average house prices across the UK at £528,798- although prices have declined by -2.3% on an annual basis.
The South East fell the most during 2023, when compared to other UK regions, with homes selling for an average of £376,804 (-4.5%), a drop of £17,755.
Whilst the cost of living may ease for some, market growth will be cautious whilst interest rates remain high
Kim Kinnaird, director of Halifax Mortgages, said: “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.
“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.”
Other industry voices were doggedly optimistic about 2024’s house prices
Director of Benham and Reeves, Marc von Grundherr, commented: “A clean sweep of positive house price growth in December could be considered somewhat of a Christmas miracle given the turbulent year 2023 turned out to be.
However, those of us on the front lines have been observing a growing level of market momentum for some months now and so it was always a question of when, not if, this started to boost market health where house price growth is concerned.
The property market has once again demonstrated its resilience in the face of economic uncertainty and while challenges still remain, you’d be ill-advised to predict a fall in property values over the coming year just a few short days into January.”
CEO of Octane Capital, Jonathan Samuels, commented: “A freeze on interest rates has certainly helped to steady the ship and not only have we seen mortgage approvals start to climb, but house prices are now starting to follow suit.
“With the base rate remaining at its highest since 2008, we’re not yet out of the woods, but we can now see the light through the trees, and it’s difficult to anticipate anything other than further positivity on the horizon in 2024.”
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