House prices actually grew in 2023 – says Halifax 

Despite predictions, the housing market actually grew by 1.7 per cent overall in 2023, according to the latest figures from major lender Halifax. The bank’s house price index reveals that prices increased by 1.1 percent last month, the third monthly rise in a row. The typical UK home now costs £287,105. London continues to experience the highest house prices across all UK regions, at an average of £528,798.

Kim Kinnaird, the director of Halifax mortgages, said: “The housing market beat expectations in 2023 and grew by 1.7 per cent on an annual basis. The average property price is now £4,800 higher than it was in December 2022.”

According to Kinnaird, a lack of supply is driving price rises. “The growth we have seen is likely being driven by a shortage of properties on the market, rather than the strength of buyer demand. That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”

But, while she stressed that forecasting is increasingly difficult in the current economic climate, she warned that 2024 could see price falls of up to 4%, as broader uncertainties mean buyers and sellers may be cautious about making a move.

“While wage growth is now above inflation, helping to ease cost of living pressures for some and improving housing affordability,” she said, “interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of England’s target.”

In December, the Bank of England kept interest rates at 5.25% for a third consecutive time. The rate of inflation fell to 3.9% in November, its lowest in two years.

Read more about this story on the Landlord Today and Guardian websites.