UK house prices fell again in September, but the pace of monthly decline slows.
It’s time to take a look at the Halifax House Price Index for September 2023, which was published today.
The data shows that house prices fell further in September, at 4.7% lower than the same month a year earlier. This was a sixth consecutive monthly fall, though the pace of decline slowed markedly compared to August.
The average home now costs £278,601, a drop of around £1,200 since last month. Prices are down by -4.7% annually, largely unchanged from -4.5% in August. Nonetheless, they remain higher than in March 2020, such was the extraordinary growth seen during the pandemic.
Activity levels continue to look subdued compared to recent years, with industry data showing lower levels of new instructions to sell homes and agreed sales. Borrowing costs are the primary factor, given the impact of higher interest rates on mortgage affordability.
In summary:
- Average house price fell by -0.4% in September, compared to -1.8% in August.
- Property prices dropped by -4.7% on an annual basis (vs -4.5% last month).
- Typical UK home now costs £278,601, around the level seen in early 2022.
- Property prices still up by +1.0% since initial Base Rate rise in December 2021.
- Average prices remain more than £39,000 above pre-pandemic levels.
- South of England continues to see most downward pressure on property prices.
The next Halifax House Price Index is scheduled for release on Tuesday 7th November 2023.
