Average house prices in the UK decreased by 2.1% in the 12 months to November 2023, down from a drop of 1.3% in the 12 months to October 2023, according to the latest ONS House Price Index.
The average house price stood at £285,000 in November 2023, down £6,000 year-on-year.
The data reveals that average house prices over the 12 months to November 2023 decreased by an average of 2.9% in England to £302,000, decreased 2.4% in Wales to £213,000, but increased by 2.2% in Scotland to hit an average of £194,000.
In addition, average house prices increased by 2.1% to £180,000 in the year to Q3 (July to September) 2023 in Northern Ireland.
The North East of England saw the smallest decrease in average house prices during this period, down 0.4%, while London saw the largest fall, down 6%.
The data highlights that the North East remains resilient, with a very slight price drop, compared to other locations across the country.
Nicky Stevenson, managing director at Fine & Country, said: “Realistic pricing from sellers who were more willing to negotiate with buyers softened house prices in November, but the time lag in the ONS’ reporting means that it feels like much has already changed.
“Many forecasters have made positive predictions for house prices in 2024, underlining the property market’s resilience, and there are many reasons for cautious optimism.
“Stable, or better yet falling, interest rates will help draw greater numbers of buyers to the property market — and lenders have started the year by offering increasingly competitive mortgage rates, widening affordability and increasing demand.
“The property market is getting busier, with more sellers marketing their homes to capitalise on growing consumer confidence and activity. They are selling to a very motivated pool of buyers who are still quick to snap up good-quality properties in desirable areas.
“Despite this, there could still be some bumps along the way as the small rise in inflation made on 18th January 2024 reminds us that the economy is not out of the woods yet. The next couple of Bank of England decisions will play a big role in determining whether increased activity levels can be sustained in the early part of this year.”
If you would like to discuss the premium market in the North East and the possibility of selling your home, please get in touch.