Annual drop in house prices revealed by data

February 22, 2024 by Alan

House Prices

New data that has been issued by the government reveals that there has been a drop of 1.4% in the average price of a house in the UK, compared with the same time last year.

This data comes from the December UK House Price Index. It shows the average UK house price to be £284,691, which represents a year-on-year drop of 1.4%. Looked at by region, the area of the country where the annual drop in prices has been steepest is London. There, the price is -4.8% lower than at the start of 2023.

However, not all of the house price trends are pointing downwards. When examined on a month-to-month basis, the average national price actually rose by 0.1%, according to this data. Regionally, that growth was flat in London too though, staying at 0% over the course of the month.

Jason Harris-Cohen, the chief executive of Open Property Group, told Mortgage Strategy that this month-on-month rise was good news because it was coming during a period when the market is generally in a lull.

He then stated that:

“This slight increase provides the first evidence that the mortgage market resurgence in both approvals and approval based house price growth is starting to filter through to sold prices.”

He concluded by arguing that the slump in sold prices the market has witnessed since last summer is now coming to an end.

Advisors with the CeMAP qualification will know that lower prices could tempt more buyers into the market, who will need professional guidance.