The average annual house price decline is easing with monthly prices increasing by 0.2%, according to the latest figures from e.surv.
As e.surv director Richard Sexton explains the data provides some light relief for homeowners. “On a monthly basis house prices have risen, in this instance by some £550, or 0.2%, in December 2023, and now stand at a level last seen in February 2022”.
He adds: “The continued fall in the rate of inflation and its subsequent impact on mortgage pricing is slowly beginning to feed into the housing market. The annual average sale price of homes in England and Wales that were sold and completed in December fell by some £13,150, or -3.5%, a reduction in November’s rate of -3.7%.
“Our data includes all transactions whether using cash or mortgage finance so gives a reliable picture of what is actually happening across the entire market. This shows us that this is the first time in the last sixteen months in which the annual rate has improved over the previous month”.
Looking forward, Sexton suggests that with no further anticipated interest rate rises predicted (and indeed cuts perhaps from as early as May) and the prospect of a pre-election budget that will to some degree address housing market woes, “we can expect borrowers to continue to benefit from lower mortgage rates as lenders fight for market share in a recovering market.”
For the third month in succession, the North East has the highest rate of price growth of all ten areas. In fact, the North East has been in one of the top five spots for regional price growth in nine of the last twelve months.
Bottom place in the annual changes is the East of England, with the largest fall in prices over the year, of -6.0%. The East of England has been in one of the bottom five for all 12 of the last 12 months, the only area to have done so.