Recent data from the Office for National Statistics has highlighted a decrease in average UK house prices. Over the 12 months leading up to November 2023, there’s been a 2.1% drop in house prices. This decline is steeper than the 1.3% decrease observed in the 12 months to October 2023.
What’s the Average Price Now?
As of November 2023, the average UK house price stands at £285,000. This figure is £6,000 less than what it was a year ago. It marks a significant change, reflecting the shifting dynamics in the housing market.
Country Breakdown
England
In England, the average house price has fallen to £302,000, down by 2.9%. This decline is the most substantial since 2009.
Wales
Wales also saw a decrease in its average house prices, falling by 2.4% to £213,000.
Scotland
Contrasting with England and Wales, Scotland experienced an increase in average house prices. They rose by 2.2%, reaching £194,000.
Northern Ireland
Similarly, Northern Ireland saw a rise in house prices by 2.1%, bringing the average price to £180,000.
Regions – London vs. The North East
London, typically known for its high property prices, witnessed the largest fall in house prices across England, with a decrease of 6.0%, bringing the average house price to £505,000.
The North East of England saw the smallest decrease in average house prices, which fell by just 0.4%, setting the average house price at £160,000.
Behind the Numbers
The COVID-19 pandemic has significantly impacted the housing market, particularly affecting the supply of housing transactions. To adapt, methodological changes were introduced, especially around new build transactions in England and Wales. However, it’s important to note that transaction volumes remain affected, and there’s increased uncertainty around new build prices.
The number of residential transactions in the UK also saw a notable decline. November 2023’s provisional estimate was 80,780 transactions, which is 22% lower than in November 2022 and 1% lower than in October 2023.
On a seasonally adjusted basis, there was a 0.4% decrease in average UK house prices in November 2023. Without seasonal adjustment, the decrease was 0.8% for the same month.
A Varied Picture
The UK housing market presents a varied picture as of late 2023. While some regions like Scotland and Northern Ireland are seeing growth in house prices, others like England and Wales are experiencing declines. London, despite its high property prices, has not been immune to this downturn.