December house prices have fallen by 1.5% in comparison to November, marking the fourth consecutive month of decline amongst property in the UK. Halifax reveals that the average price for a house is now £281,272.
This ongoing decline urges those looking to buy a house or sell a house to ‘remain cautious’ as we progress into 2023, as house prices are forecasted to ‘fall around 8% over the course of the year,’ according to Kim Kinnaird, director at Halifax Mortgages (opens in new tab). Here’s what you need to know.
UK house prices drop for fourth consecutive month
The fall of house prices in December was lower than the monthly decline of 2.4% recorded in November of the same year, even when accounting for the expected seasonal slowdown of the festive period, according to Halifax.
‘As we’ve seen over the past few months, uncertainties about the extent to which cost of living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market,’ says Kim Kinnaird at Halifax.
Halifax described the housing market as a ‘mixed picture in 2022’ as there was a rapid house price growth in effect for the first six months, which then saw a plateau in the summer, to the eventual consecutive decline that began in September.
Despite the drop in house prices, it’s important to always consider these trends in the context of historic prices. ‘The cost of the average home remains high – greater than it was at the start of 2022 and over 11% more than house prices at the beginning of 2021,’ says Kim Kinnaird at Halifax.
If you’re wondering, ‘Is now a good time to buy a house?‘ be aware that this is expected to impact both buyers and sellers, with experts from Halifax advising us to exercise caution for the year ahead when on the property market as house prices are forecasted to ‘fall around 8% over the course of the year,’ in line with house predictions for the next five years.
Amidst the cost of living crisis and rising interest rates hitting demand for property, getting a mortgage as a first-time buyer is still a fairly difficult feat, but it’s nothing that can’t be helped with the correct property advice that’s expert-led and reliable.