While UK house prices rose in October, up 1.1 percent on a monthly basis for the first time in six months, all regions saw house prices decline on an annual basis.
However, some areas have been hit harder than others. According to Halifax’s latest House Price Index, South East England saw prices drop as much as six percent over the last year, with the average property now valued at £374,066. In October 2022, the average house price in South East England was £398,090, representing a decrease of £24,024.
Charlotte Nixon, mortgage expert at Quilter commented: “For many sellers, especially in the south where the greatest price pressures are felt, the current situation is a reminder that price resilience is a regional affair.
“While some buyers may hold out for pre-pandemic valuations, the interplay of supply and demand, coupled with shifting economic winds, may necessitate a new approach to price negotiations.
“For those considering their next move, the strategy is less about rushing in and more about measured decisions that suit your life needs in the here and now rather than trying to time the market.”
The Halifax HPI showed property prices in South West England experienced the second-largest decline annually, with a drop of 5.7 percent.
Eastern England and the East Midlands trailed closely behind, with both regions reporting a 5.3 percent decrease in property values.
Greater London continues to have the highest average house price in the UK at £524,057, but prices are still recorded to have fallen by 4.6 percent over the last year.
Property prices in Wales fell by 3.9 percent over the year, with the average house price currently sitting at £213,125.
Meanwhile, Scotland’s annual house price was the most resilient, down just-0.2 percent annually, with homes in the nation now averaging £202,608.
Northern Ireland mirrored this pattern, with a decline of 0.5 percent with average house prices of £183,922.
Commenting on the data, Kim Kinnaird, director at Halifax Mortgages, said: “The average house price is now £281,974 – an increase of almost £3,000 compared to the previous month. On an annual basis, prices are down -3.2 percent, though the decline was at a slower pace than we saw in September (-4.5 percent).”
Ms Kinnaird explained that prospective sellers adopting a more cautious approach, resulting in a limited supply of homes for sale, is likely to have bolstered short-term prices. This contrasts with prices being primarily driven by buyer demand, which continues to remain weak overall.
She added: “While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures continue to be challenges for buyers.
“Across the medium-term, with financial markets not anticipating a decline in the Bank of England’s Base Rate soon, we expect house prices to fall further overall – with a return to growth from 2025.
“The current picture should continue to be seen in the context of the longer-term house price trend as, on average, prices remain around £40,000 above pre-pandemic levels.”
