House prices end 2022 with fourth monthly drop in a row
By TMG | 10th January 2023
Property prices in the UK fell for the fourth month in a row in December, the longest run of declines since 2008, according to Nationwide.
A monthly fall of 0.1%, adding up to an annual rise of 2.8%, saw the average house price come to £262,068 in December, the lender details. According to Halifax, The average house price fell to £281,272 in December.
The UK's largest mortgage lender said both house buyers and sellers are to "remain cautious" over 2023 as supply and demand reduces. An 8% price drop is forecast for 2023, Halifax Mortgages said.
Chief economist Robert Gardner says: “The recent weakness in mortgage applications may, in part, represent an early seasonal slowdown. With the chaotic backdrop and elevated mortgage rates in recent months, it wouldn’t be surprising if potential buyers have opted to wait until the New Year to see how mortgage rates evolve before deciding to step into the market.”
“Longer-term interest rates, which underpin mortgage pricing, have returned towards the levels prevailing before the mini-Budget. If sustained, this should feed through to mortgage rates and help improve the affordability position for potential buyers, as will solid rates of income growth.”
“But the main factor that would help achieve a relatively soft landing (especially for house prices) is if forced selling can be avoided, and there are good reasons to be optimistic on that front. Most forecasters expect the unemployment rate to rise towards 5% in the years ahead – a significant increase, but this would still be low by historic standards.”
Source:
Adams, G. (2023) House prices end 2022 with fourth monthly drop in a row. Available at: https://www.mortgagestrategy.co.uk/news/house-prices-end-2022-with-fourth-monthly-drop-in-a-row/ (Accessed 05/01/2023)
Kollewe, J.(2022) UK house prices fall for fourth month in a row, the longest run since 2008. Available at:https://www.theguardian.com/business/2022/dec/30/uk-house-prices-fall-for-fourth-month-in-a-row-the-longest-run-since-2008 (Accessed 05/01/2023).
Taaffe-Maguire, S. (2023) House prices fall for fourth month in row. Available at: https://news.sky.com/story/house-prices-fall-for-fourth-month-in-row-12780875 (Accessed: 05/01/2023)
