UK house prices fall by £6,000 on average

The average UK house price was £6,000 ($7,612) lower in November last year, falling at the fastest pace in over a decade.

Property values fell by 2.1% over the 12 months to November to reach £285,000 on average, according to the Office for National Statistics (ONS), the biggest drop since 2011.

London was the region with the biggest annual decrease, with prices in the capital falling 6%.

House prices typically fell across the year in England and Wales, but increased in Scotland and Northern Ireland.

Average house prices over the 12 months to November 2023 fell 2.9% in England to £302,000 and dropped 2.4% in Wales to £213,000.

Read more: UK inflation rises to 4% in December in blow to interest rate cut hopes

The typical property value increased in Scotland to £194,000, which represents a 2.2% annual rise.

Average house prices increased by 2.1% annually in Northern Ireland to £180,000.

Within England, the North East recorded a 0.4% drop, the smallest decrease in average house prices in the 12 months to November.

According to an estate agent boss, house hunters are putting their property searches on ice while they wait to see if they can get a cheaper mortgage deal

Nick Leeming, chairman of Jackson-Stops, said: “The figures published today suggest a frosty end to the year with buyers putting their searches on hold in order to see how mortgage rates would react as inflation fell once again. 2023 was defined by mortgage affordability pressures and a shift from immense competition, towards a smaller, more committed buyer pool.”

Aimee North, head of housing market indices at the ONS, said: “The annual fall in house prices continues to accelerate, with the average cost of a home falling at its fastest rate for over 12 years.

“Meanwhile annual rent increases remain at record levels across the country.”

Private rental prices paid by tenants in the UK rose by 6.2% in the 12 months to December 2023.

Read more: How hard is it to get on the property ladder?

Wales that saw the biggest annual increase in rents, with prices rising 7.1% over the year to December, down only slightly from the 7.3% rise in rents in the year to November. In Scotland, rents rose 6.2% over 2023 and England registered a 6.1% increase.

Private rental prices in London increased by 6.8% in the year to December 2023, down slightly from a record-high rise of 6.9% in the 12 months to November 2023.

Watch: How much money do I need to buy a house?

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