In December 2023, monthly house prices rose by 0.2%, bringing them to a level last observed in February 2022. The ongoing decline in inflation rates and its subsequent impact on mortgage pricing is slowly starting to influence the housing market. These figures mark the third month in 2023 with an average house price increase.
For homes sold and completed in December in England and Wales, the annual average sale price experienced a decrease of £13,150 or 3.5%, a slight improvement from the 3.7% decrease in November.
The estimated average house price at the end of the year was £362,187, approximately £13,200 lower than the previous year.
However, considering the overall trend since the first pandemic lockdown in March 2020, which saw an increase of nearly £48,350 in prices, most property owners likely still gained considerable equity despite the price declines in 2023. So, despite much pessimism about UK property investment in 2023, the market performed remarkably well in the face of numerous external economic factors – good news if you are interested in making money in property.
From November 2023, prices increased monthly in 47 Unitary Authority areas, indicating improved confidence in various housing markets across England and Wales, according to e.surv. Rutland experienced the most significant price increase in November at 3.5%, though low transaction counts may have influenced the data.
This data encompasses all transactions, whether through cash or mortgage finance, providing a comprehensive overview of the entire market. Notably, this marks the first instance in the last 16 months where the annual rate has shown improvement over the previous month in an e.surv house price index.
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