Annual house prices declined less than predicted, however, at just 1%
UK house prices dropped almost £7,000 in December compared to November in what Rightmove described as a “bigger than average” seasonal decline
The 1.9% price drop (-£6,966) means the average house price is now £355,177.
An almost 2% price reduction is more drastic than the 20-year average for December, which sees asking prices dip -1.5%.
The year-on-year picture “was more resilient than predicted”, according to the portal, with asking prices down only 1.1% on December last year.
>>See also: Bloor Homes’ profit declines 9%
Average mortgage rates have now fallen for 19 consecutive weeks, with the average 5-year fixed mortgage rate now 5.11% compared to 6.11% in July
“2023 has been an interesting year, with very little straight forward, yet far from the negative market it might have been given the broader economy,” said Rightmove’s Tim Bannister.
“While there has been a lower transaction level than the previous few years and some adjustment in values, attractively priced property is selling.”
Sales agreed for this year are down 13% compared with 2022. While asking prices are down across the board, the decline is most notable in the South East where prices are 3.7% lower than in 2022.
Meanwhile, prices in the North West are up 1.5% compared to last year. Rightmove predicts new seller asking prices will drop nationally by an average of 1% in 2024.
Building society Halifax reported that average house prices increased by 0.5% in November, an assesment broadly in line with Nationwide Building Society’s house price index revealing a November increase of 0.2%.
Last month property portal Zoopla declared it a “buyer’s market,” with discounts off asking prices of 6%.
No comments yet