The UK House Price Index (HPI) released today (18th October) revealed that the average UK house price stood at £291,000 in August 2023 — which is little changed from 12 months ago — but £9,000 above the dip in March 2023.

Average house prices in the 12 months to August 2023 remained “little changed” in England (£310,000), while they decreased in Wales to £217,000 (-0.1%) and rose in Scotland to £194,000 (1.1%).

Average UK house prices climbed by 0.3% between July and August 2023, compared with an uptick of 0.8% during the same period 12 months ago.

The government has attributed more stable prices in comparison to recent months to weaker demand and stronger supply than a year ago.

The CPI — including owner occupiers’ housing costs — rose by 6.3% in the 12 months to September 2023, the same rate as in August.

The ONS highlighted that large downward effects from food and non-alcoholic beverages, furniture, and household goods were mostly offset by upward contributions from transport, restaurants, and hotels.

Industry experts react to the latest ONS inflation and HPI figures

We will be updating this story throughout the day.

12:00pm

Richard Harrison, head of mortgages at Atom Bank, on the HPI:

“There is some cause for cautious optimism.

“Softening prices present an opportunity for first-time buyers, and many experts now think that base rate has reached its peak, with headline mortgage pricing falling over the past 12 weeks.

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“This is unlikely to stimulate an immediate dramatic bounce in activity and prices, but it does reduce the potential of a more pronounced reduction in prices as had previously been speculated by some commentators."

Douglas Grant, Group CEO at Manx Financial Group PLC, on CPI: 

“CPI inflation remaining unchanged signals that the road ahead is far from being without bumps and, as SMEs account for around half of all private sector turnover in the UK, we need more innovative measures to ensure their survival.”

1:00pm

Paul McGerrigan, CEO at Loan.co.uk, on the HPI:

“The property market has shown remarkable resilience — despite the cost of living crisis and rising interest rates pushing hard against growth — [and] prices remain stubbornly strong.”

2:00pm

Arjan Verbeek, CEO of Perenna, on the HPI:

“While a temporary slowing of annual house price growth may be a welcome sight for some, would-be homeowners are still faced with a market that offers very little certainty.

“A system based on short-term fixed rates has proven itself ineffective at getting homes in the hands of deserving individuals.

“It’s time for lenders, regulators, and the government to recognise and support the enormous value that long-term fixed-rate mortgages will bring to the UK housing ecosystem.”

3:00pm

Stephen Perkins, managing director at Yellow Brick Mortgages, on the HPI:

"The property market is almost comatose at present.

“House prices have been coming down, but not by a large enough margin to inspire potential buyers to flock to the market.

“Prices need to come down further if we are to see any real pick-up in activity.”

4:00pm

Matt Surridge, sales director at MPowered Mortgages, on the HPI:

"Falling house growth is no longer possible to ignore and represents the consumer response to higher borrowing costs and rising inflation.

“This trend is particularly concerning as while these figures are from August, we are not seeing the same seasonal pickup in demand that we would expect at the start of Q4.

"Hopefully we will see a levelling of house prices shortly, supported by falling mortgage rates and product innovation.”