Analysts say outlook for 2024 more positive
UK house prices dropped 2.1% in the year to November, according to the Office for National Statistics.
Its latest UK House Price Index showed the average property was valued at £285,000 in the month, £6,000 lower than 12 months ago.
The drop in prices was an acceleration from the revised fall of 1.3% in the 12 months to October.
House prices dropped 2.9% in England, while in Wales and Scotland they decreased 2.4% and 2.9% respectively.
The North East was the English region that saw the smallest decrease (-0.4%), while London saw the largest (-6%).
Emma Cox, managing director of real estate at bank Shawbrook, said: “A drop off in buying activity in the lead up to Christmas coupled with tough market conditions contributed to a further fall in November.
“Whilst this means December’s figures could also decline, the outlook for 2024 is looking more positive.
“Interest rates are likely to drop or at least hold, and a reduction in mortgage rates should fuel new buying activity.”
Mobeen Akram, new homes director at the Mortgage Advice Bureau, said the market was “in a good starting position” for the coming year.
“We’ve already seen positive indicators of stability through past reduced inflation, and we did expect hiccups along the way, so we don’t need to be concerned right now,” she said.
“Furthermore, though there were drops in house prices throughout last year, they were incremental and small.”
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