What UK house prices will do in 2024
Prices fell by around 1% in 2023, and further drops could be on the cards
House prices fell slightly in 2023, and experts predict that the new year could bring further reductions.
The latest data from the Land Registry shows an annual fall of 1.2%, with the average UK house price standing at £288,000 in October. While this isn't far off the all-time high of £292,000 recorded in September 2022, prices are now consistently trending downwards rather than upwards.
Here, Which? analyses what's happening to house prices according to other indices including Nationwide, Halifax, and Rightmove, and explains what might come next.
How have house prices changed?
The Land Registry's UK House Price Index is the most reliable barometer of what's happening to house prices, as it's based on actual property sales rather than asking prices. It works on a two-month lag, so the most recent figures are for October.
The Land Registry says the average price of a property in the UK dipped by 1.2% between October 2022 and 2023.
In the 12 months prior, house price growth soared by nearly 13% - so there has been a marked slowdown in growth over the past year.
There is a gap of £99,000 between the average price paid by first-time buyers and those who are already on the housing ladder in England:
First-time buyer: £253,000
Home mover: £352,000
How do other house price indices compare?
As well as Land Registry data, there are several other property price indices that indicate what's going on with house prices.
The portal Rightmove provides the most up-to-date figures, but they're based on asking prices set by sellers rather than confirmed sales. Nationwide and Halifax also publish their own monthly data, based on mortgage lending.
Rightmove and Nationwide found that house prices dropped in 2023, while Halifax reported an increase.
Nationwide's latest index reveals house prices fell by 1.8% in 2023. The building society's chief economist said that housing affordability remained stretched due to the impact of high mortgage rates.
Halifax said the growth it reported in December was 'likely driven by a shortage of properties on the market, rather than the strength of buyer demand'.
Sourced by: Which