In the most recent data up to October 2023, the UK housing market has shown a decrease in average house prices. This downturn is not just a one-off event but part of an ongoing trend, as evidenced by the 1.2% decrease over the past year. This decline is more pronounced compared to the 0.6% fall observed up to September 2023. As of October 2023, the average house in the UK is valued at £288,000, which is £3,000 less than it was a year ago.

National Variations

The housing market varies significantly across the UK’s constituent countries:

• England: Experienced a significant decline, with average prices falling by 1.4% to £306,000.
• Wales: Had a 3.0% drop, bringing the average house price to £214,000.
• Scotland: Bucked the trend with a slight increase of 0.2%, setting the average price at £191,000.
• Northern Ireland: Witnessed an increase of 2.1%, with average prices reaching £180,000.

The English Regions: A Closer Look

In England, different regions are experiencing varying trends:

• London: Despite being the most expensive region with an average price of £516,000, London saw the most significant fall in prices at 3.6%.
• North East: This region stands out as the only one in England where prices have risen, albeit marginally by 0.2%, to an average of £161,000.

The Influence of COVID-19 and Methodology Changes

The COVID-19 pandemic has had a lasting impact on the housing market, particularly affecting the supply chain and transaction processes. The methodology for processing new build properties was revised in 2020 to better reflect these challenges. A further refinement to the methodology was implemented in December 2023, enhancing the quality and coherence of UK House Price Index (HPI) statistics.

Transactions in Decline

The volume of residential transactions in the UK has also seen a decrease. October 2023 recorded 82,910 transactions, marking a 21% drop from the previous year and a 3% decrease from September 2023.

Seasonal Adjustments and Monthly Changes

When considering seasonal adjustments, the average UK house price fell by 0.3% in October 2023, continuing a downward trend from September, when prices fell by 0.7%. Without these adjustments, the decrease for October was 0.7%.

Understanding the Trends

This data provides a comprehensive overview of the current state of the UK housing market. While regional disparities exist, the overall trend indicates a cooling market.