Mapped: The UK towns and cities where house prices are falling more than anywhere else (Image: Getty)
The UK experienced the fastest decline in average house prices in over a decade, with a £6,000 decrease in November last year, according to the Office for National Statistics (ONS).
According to the Office for National Statistics (ONS), property values fell by 2.1% over the 12 months to November, reaching an average of £285,000 – the most substantial drop since 2011.
London witnessed the most substantial annual decrease at 6%, contributing to the overall decline in England and Wales.
However, Scotland and Northern Ireland saw increases in house prices.
Chart: UK House Price Index by regions
- Brown: UK
- Yellow: Wales
- Green: Northern Ireland
- Red: Scotland
Mapped: The UK towns and cities where house prices are falling more than anywhere else (Image: Housetrack)
In comparison, average house prices in England fell by 2.9% to £302,000, while Wales experienced a 2.4% drop to £213,000.
In contrast, Scotland saw a 2.2% annual rise to £194,000, and Northern Ireland had a 2.1% increase to £180,000.
The North East in England recorded the smallest decrease at 0.4%.
The data is sourced from the Office for National Statistics (ONS) house price index, utilising Land Registry information, though these figures are provisional and subject to potential revision in subsequent months.
Chart: UK House Price Index by cities
- Purple: Birmingham
- Orange: Edinburgh
- Yellow: Leeds
- Orange: Liverpool
- Brown: London
- Grey: Manchester
Mapped: The UK towns and cities where house prices are falling more than anywhere else (Image: Housetrack)
According to Jackson-Stops, potential homebuyers are pausing their property searches, awaiting more favorable deals amid concerns about affordability.
Estate agent Nick Leeming, Chairman of Jackson-Stops, described the housing market in 2023 as characterised by affordability pressures and a shift from intense competition to a smaller, more committed buyer pool.
Aimee North, Head of Housing Market Indices at the ONS, pointed out that the annual fall in house prices is accelerating, reaching the fastest rate in over 12 years.
Meanwhile, rental prices in the UK rose by 6.2% in the 12 months to December 2023. In Wales, rental prices experienced the most significant annual increase at 7.1%, with Scotland registering a 6.2% rise, and England showing a 6.1% increase.
Additionally, private rental prices in London increased by 6.8% in the year to December 2023, slightly down from the record-high rise of 6.9% in the 12 months to November 2023.
Based on estate agents, a shift in the market due to falling rates, with over 50 lenders reducing rates since the year began, has led to increased buyer interest, with a 20% rise in home registrations compared to the previous year.
The latest house price indices from Halifax and Rightmove also contribute to the overall market picture.
Halifax reported a 1.7% increase in house prices in the 12 months to December, while Rightmove observed a 1.3% rise in property asking prices from December to January, the most significant December-to-January increase since 2020.
Industry experts predict a positive outlook for the market, anticipating a rise in house prices, while others express concerns about inflation and anticipate a gradual downward trend in prices over the coming months.
While estate agent Knight Frank adjusted its initial forecast from a 4% decrease to a 3% increase for the year, explaining that “the main reason for this changing outlook is that inflation is falling faster than expected”, Jonathan Hopper, Chief Executive of Garrington Property Finders, suggests that average prices may be gradually increasing.
The overall market outlook is intricately tied to broader economic factors, such as inflation hitting the UK. In December, inflation unexpectedly rose to 4%, up from 3.9% in November.
The Bank of England’s decision on in February could significantly influence the future direction of the housing market.