Property costs decreased by 2.1 per cent within the 12 months to November 2023, in keeping with the Workplace for Nationwide Statistics.
This was the most important annual fall in home costs since 2011 and takes the typical property worth to £285,000 – down £6,000 in a 12 months.
It was the third consecutive month of falls, after costs had fallen 1.3 per cent in October and 0.4 per cent in November.
Nationwide and regional image
Common home costs decreased in England by 2.9 per cent to £302,000 within the 12 months to November and fell in Wales by 2.4 per cent to £213,000.
However they elevated in Scotland to £194,000, an increase of two.2 per cent, and by 2.1 per cent to £180,000 in Northern Eire.
Home worth actions ranged from a drop of 0.4 per cent within the North East to a fall of six per cent in London. Nonetheless the best common worth was nonetheless within the capital, at £505,000.
Sarah Coles, head of private finance at Hargreaves Lansdown, stated: “Home worth falls accelerated in November, as they endured the steepest drop in 13 years. It displays simply how dire issues have been on the tail finish of the summer season, when so many of those gross sales have been agreed.
“Whereas mortgage charges have fallen within the months since, we’re not out of the woods but. The market nonetheless faces some severe challenges, which may pull costs even decrease.”
Nick Leeming, chairman of Jackson-Stops, added: “2023 was outlined by mortgage affordability pressures and a shift from immense competitors, in the direction of a smaller, extra dedicated purchaser pool.
“Whereas increased mortgage charges will proceed to weigh on nearly all of patrons minds, falling inflation will sow the seeds for a busier begin to the market in 2024.
“The 2024 property market can also be more likely to be impacted by an election. All the time a divisive concern, housing is more likely to be pushed up the political agenda with main events each difficult for the hearts and votes of present and potential householders.”