House prices stable after price falls in last two months

7th February 2023
Home > News > House prices stable after price falls in last two months

Reported by David Callaghan the Negotiator

House prices stable after price falls in last two months

The Halifax HPI says prices were static in January as the market stabilises after successive drops.

House prices stabilised in January after price falls in the previous two months, the latest Halifax HPI reveals. The monthly change last month was 0% compared to drops of 1.3% in December and 2.4% in November. Quarterly figures show a 3.6% price reduction as the market cools following a bumper few months.

Latest figures also say that the annual increase was 1.9%, down from 2.1% last month, and the lowest in three years.

Kim Kinnaird, director of Halifax Mortgages, says: “The start of 2023 has brought some stability to UK house prices, with the average house price remaining largely unchanged in January at £281,684, a very small decrease on December. We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years.

For those looking to get on or up the housing ladder, confidence may improve”

“As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand. For those looking to get on or up the housing ladder, confidence may improve beyond the near-term. Lower house prices and the potential for interest rates to peak below the level being anticipated last year should lead to an improvement in home buying affordability over time.”

Industry reaction

Jason Tebb, CEO at OnTheMarket, says: “Seasonal factors are increasingly evident compared to the previous two years in when the pandemic skewed the market cycle.

“Our own data shows that sellers expect it to take slightly longer to sell their homes than has been the case in recent months, which ties in with this, although confidence remains remarkably stable. Conditions remain challenging with the cost of living and mortgage rates higher than many have become used to.”

 

 

 


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