House prices dropping at fastest rate …

House prices fell at their fastest rate since 2011 during November 2023, the Land Registry has revealed.

The latest Land Registry House Price Index shows average prices fell 2.1% annually in November 2023 to £284,950- £6,00 lower than a year ago.

It follows a 1.3% annual drop in October, which was revised from 1.2% previously.

Average prices were down 0.8% on a monthly basis in November.

Agents were undeterred by the steep drop though, with many highlighting how the market has changed since the end of last year with mortgage rates falling and buyer demand rising.

Simon Gerrard, managing director of London-based estate agent Martyn Gerrard, suggests the market has turned a corner more recently.

He said: “We’ve seen a 20% increase in people registering to buy a home compared to this time last year.”

“This is unsurprising given the growing competition between lenders.

“This will intensify when the Bank of England starts dropping the interest rate, which is expected soon. Once this takes place, I expect that we will see a lot of pent-up demand unleashed.

“I have always maintained the fall in house prices would be muted and temporary.”

Iain McKenzie, chief executive of The Guild of Property Professionals, said a fall of around 2% in the space of 12 months is modest considering the scale of the challenges that have faced the economy. 

He said: “Forecasts at the start of last year suggested prices would fall off a cliff, following significant increases during the pandemic years. 

“The figures show that UK house prices have decreased by £6,000 which – although will be unwelcome news to sellers – could have been much worse.

“The property industry has always been marked by adaptability, and estate agents across the country have been able to work with sellers to keep healthy levels of properties on the market.

“Dreams of homeownership have also endured, driven in part by the demand from renters to move away from the expensive rental market.”

Tom Bill, head of UK residential research at Knight Frank, added: “UK house price declines are bottoming out as mortgage rates fall, which should feed through into the official data in coming months.

“Financial markets now expect five interest rate cuts of 0.25% this year as inflation comes under control more quickly than expected, which has improved the outlook markedly for buyers and sellers.

“Political instability has become the biggest risk facing the market, as we have seen this week, although if an election takes place in the second half of the year, activity should see a seasonal jump in the Spring.”