House prices have dropped by a further -1.9% month-on-month in December, with the average asking price for a property in the UK standing at £355,177, RightMove’s house price index (HPI) has revealed.

The month-on-month fall in house prices in December follows a -1.7% drop in November.

Annual house prices have also dropped off in December by -1.1%, following an annual fall of -1.3% in November.

Director of property science at Rightmove, Tim Bannister, said: "Further price falls beyond the usual seasonal trends that we’d expect at this time of year signal that some new sellers are continuing to act on the advice of agents to price competitively. We entered this year under a cloud of uncertainty, as the fallout from the autumn mini-Budget filtered through to lower activity levels. High mortgage rates which have added to already-stretched buyer affordability have been a challenge throughout 2023 and this is likely to carry into next year.

"However for now, there appears to be more calm and certainty heading into 2024, and the annual fall of 1.1% in asking prices highlights the market’s much better than predicted resilience this year."

For first-time buyers, the national average asking price, excluding inner London, has dropped by -1.5% month-on-month, with the average price standing at £219,984 in December.

Despite the decline in prices, the average new seller asking prices were higher in seven out of 11 areas across Great Britain compared to a year ago, with the North West witnessing an increase of 1.5% in new asking prices year-on-year.

However, the South East saw new seller prices drop by -3.7% in December, compared to the same month in 2022.

Head of business development at Saffron for Intermediaries, Tony Hall, added: "Overall, house prices have held up much better in 2023 than many predicted this time last year, myself included. The market at the end of 2022 was turbulent to say the least, so it has been great to see more consistent and realistic pricing this year as the mortgage market thrives on stability.

"With the Chancellor also not pulling any rabbits out the hat for housing in the autumn statement, we should see this calmer period continue into next year, and pricing remaining fairly consistent as a result."

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