Halifax House Price Index7 Dec 2022 07:42
UK housing market continues to slow as average price drops again
• Average house price fell by -2.3% in November (vs. -0.4% in October)
• Annual rate of growth dropped to +4.7% (from +8.2%)
• Typical UK property now costs £285,579 (down from £292,406 last month)
• Rate of annual growth slowed in all but one region (the North East) during
November
• Similar slowing trend in Northern Ireland, Scotland, and Wales
Kim Kinnaird, Director, Halifax Mortgages, said:
“Average house prices fell in November as the rate of annual growth slowed further to +4.7% (from +8.2%), with the typical UK property price now sitting at £285,579. The monthly drop of -2.3% is the largest seen since October 2008 and the third consecutive fall.
“While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (+19% since March 2020) – this month’s fall reflects the worst of the market volatility over recent months.
“Some potential home moves have been paused as homebuyers feel increased pressure on affordability and industry data continues to suggest that many buyers and sellers are taking stock while the market continues to stabilise.
“When thinking about the future for house prices, it is important to remember the context of the last few years, when we witnessed some of the biggest house price increases the market has ever seen. Property prices are up more than £12,000 compared to this time last year, and well above pre-pandemic levels (+£46,403 vs March 2020).
“The market may now be going through a process of normalisation. While some important factors like the limited supply of properties for sale will remain, the trajectory of mortgage rates, the robustness of household finances in the face of the rising cost of living, and how the economy – and more specifically the labour market – performs will be key in determining house prices changes in 2023.”
https://www.pmi.spglobal.com/Public/Home/PressRelease/a53f0670d6f54081b344043ba25fd8e3