House prices fell 1.4% in 2023 but are expected to rise this year

Despite a 1.4% dip in 2023, UK house prices show signs of recovery. Experts now predict a 3% increase in 2024 amid stabilizing inflation.

UK house prices fell by 1.4% in the year to December 2023, according to the latest figures from the Land Registry. However, that was less than the fall of 2.3% in the 12 months to November.

Average house prices increased by 0.1% between November 2023 and December 2023, compared with a decrease of 0.8% during the same period a year earlier.

The estimated number of transactions of residential properties in December 2023 with a value of £40,000 or greater was 85,420. This is 17.8% lower than December 2022.

The regional data for England indicates that between November and December:

• the South East experienced the most significant monthly decrease with a movement of -1.9%
• the West Midlands saw the greatest monthly price growth, with a rise of 2.6%
• the North West experienced the greatest annual price rise, up by 1.2%
• London saw the lowest annual price growth, with a fall of -4.8%

Property experts had expected prices to fall further this year, but many are now revising their estimates as inflation continues to stabilise, reducing the likelihood of interest rate cuts.

The international real estate consultancy, Knight Frank, now predicts that house prices could increase by 3% this year.

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