Are UK House Prices Falling? (November 2023)
Over the past few years, the UK housing market has gone through a series of fluctuations. From the uncertainty surrounding Brexit, to the economic impact of Covid-19, the market has been in a constant state of change. As we approach the end of 2023, many are curious if UK house prices are falling. We’ve uncovered some key insights that could provide a clue to the direction of the market.
House prices in the UK are showing signs of stabilising after a period of growth. Reports suggest that prices rose by just 0.2% in September 2023, a marked slowdown from the previous months. This suggests that the UK property market is entering a period of consolidation, with prices expected to remain relatively stable in the short term.
However, it’s worth noting that the situation varies depending on the area. While some regions are experiencing a slowdown, others are still seeing significant growth. For example, the South West has seen prices rise by 6.1% over the past 12 months, while the East of England has seen growth of 4.3%.
One of the key factors impacting the housing market is a lack of supply. According to Zoopla, there has been a 26% decline in the number of properties coming to market compared to the same time last year. This shortage of supply is driving up prices in some areas, particularly those with high demand such as London.
Another key trend in the housing market is the rise of first-time buyers. In the first half of 2023, the number of first-time buyers increased by 15%. This is partly due to the introduction of new government schemes to help first-time buyers get on the property ladder. However, it’s also reflective of a wider trend of younger people entering the property market later in life.
Looking forward, the forecast for the UK housing market remains uncertain. As per Zoopla’s UK Cities House Price Index, the annual house price growth rate is expected to slow down to 3% by the end of 2023, compared to the double-digit growth seen in 2021. The reduction in growth is down to a decrease in housing demand after the post-pandemic surge in activity. However, with the ongoing shortage of homes for sale and the continued demand from first-time buyers, it’s unlikely we’ll see a significant fall in house prices in the immediate future. Instead, a slower, more stable market seems to be on the horizon. This could present balanced opportunities for both buyers who have been priced out of the market, and sellers who are looking to capitalise on the high prices before any potential slowdown.
Conclusion
So, are UK house prices falling in November 2023? The answer is that it varies depending on the area and the trends. While some areas are experiencing a slowdown in growth, others are seeing prices rise. Overall, the market is stabilising, which is good news for buyers and sellers alike. The shortage of supply is driving up prices in some areas, while the rise of first-time buyers is creating demand in others. As always with the housing market, it’s a case of watching and waiting to see what happens next. Don’t hesitate to reach out to us for more information and support.
*the above information have been taken from Zoopla’s monthly report