Annual house price growth in the UK slowed to -2.1% in the year to November, according to the latest UK House Price Index published by the Office for National Statistics (ONS).

This is down from a revised -1.3% in the 12 months to October.

As a result, the ONS has reported that the average UK house price stood at £285,000 in November 2023, a figure £6,000 lower than it was 12 months earlier.

Average house prices over the year to November decreased in England to £302,000 (-2.9%), and decreased in Wales to £213,000 (-2.4%). However, in Scotland they saw an increase to £194,000 (2.2%).

Average house prices also increased by 2.1% to £180,000 in the year to Q3 2023 in Northern Ireland.

In England, the North East was the region that saw the smallest decrease in average house prices in the 12 months to November (-0.4%), while London saw the largest fall (-6.0%).

Sales director at MPowered Mortgages, Matt Surridge, commented: “Today’s figures reflect the higher borrowing costs and the cost-of-living crisis, which deterred buyers in the second half of 2023.

“However, as we enter the new year, the outlook is decidedly more optimistic than before. Thanks to less volatile swap rates and more stable interest rates, the market thoroughly favours buyers – a welcome change for those looking to purchase and something which should drive activity.”

Technical director at Legal & General Surveying Service, Malcolm Webb, stated that the mortgage market is “kicking off the new year with some healthy competition”.

“Average mortgage rates on two and five-year fixed-rate deals have fallen for a fifth consecutive month, with many of Britain’s biggest banks currently offering a five-year fix below 4%,” Webb said. “Alongside rates dropping, mortgage product availability is also heading upwards, and you currently have over 2,200 more options to pick from than you did in January last year.”

He added: “There’s every hope this will spark renewed interest from buyers to boost transactions, and help solidify house prices. The average UK house price is very comparable to this point last year, but there are huge regional variations to consider, so it’s always worth doing your homework on your particular area to understand the trends.”

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