House Prices Drop 2.3% In November

Property buyers will be pleased to hear that house prices are continuing to fall, having dropped by 2.3 per cent in November.

This follows 0.4 per cent and 0.1 per cent falls in October and September respectively, and is the largest dip since October 2008, according to the latest Halifax House Price Index. 

This takes the national average value to £285,579, which is nearly £7,000 lower than October’s figure. 

Kim Kinnaird, director of Halifax Mortgages, said: “While a market slowdown was expected given the known economic headwinds – and following such extensive house price inflation over the last few years (+19 per cent since March 2020) – this month’s fall reflects the worst of the market volatility over recent months.”

She noted that many home moves have not gone ahead due to mortgage restrictions and affordability concerns, while lots of vendors have decided not to sell until the market stabilises. 

Looking to next year, Ms Kinnaird said this depends on the supply of properties for sale, mortgage rates, the impact of the cost-of-living crisis on household finances, and the labour market fares in 2023. 

Zoopla predicts mortgage rates will become more affordable next year, having already dropped from 5.5 per cent to 4.1 per cent in early October, after soaring to 6.5 per cent in September after the mini-Budget. 

It anticipates five-year fixed-rate products will settle between 4.5 per cent and five per cent by the middle of 2023, helping to drive one million house sales by the end of next year. 

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