UK house prices rose for the third consecutive month in December




Average house prices rose by 1.1% in December, the third monthly rise in a row, reveals Halifax’s latest House Price Index.

Property prices grew 1.7% overall in 2023 with the typical UK home now costing £287,105, just over £3,000 more than November. 

Southeast England continues to see the most downward pressure on house prices — with Halifax predicting that prices will fall by between 2-4% in 2024. 

Kim Kinnaird, director at Halifax Mortgages, commented: “As we move through 2024, the UK property market will continue to reflect the wider economic uncertainty and buyers and sellers are likely to be naturally cautious when considering making a move.

“While wage growth is now above inflation, helping to ease cost of living pressures for some and improving housing affordability, interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of England’s target.


“Our latest forecast suggests house prices could fall between -2% and -4% during the coming year, although forecast uncertainty remains high given the current economic climate.”

Gareth Lewis, managing director at MT Finance, said: "It comes as no surprise that house prices have risen slightly over the past three months, given that the period before then saw price reductions reflecting consumer unease when it came to something as monumental as a property purchase on the back of rate fluctuations and wider economic uncertainty. 

"We have certainly felt that towards the end of 2023 confidence and stability started to return. 

“However, we must be mindful that we are yet to feel the wider distress that is expected as homeowners roll off low fixed rates into a higher interest rate environment. 

"Higher distressed sells could see house prices soften through 2024 but there is still pent-up demand from consumers looking to purchase combined with low levels of stock, which could provide a stabilising impact."

Mark Harris, CEO at SPF Private Clients, said: “The housing market saw a remarkably strong finish to the year.

"Although those remortgaging this year will still see an increase in their payments, the pain will not be as bad as it could have been. It remains important to seek advice from a whole-of-market broker and plan as far ahead as possible."

Anna Clare Harper, CEO at GreenResi, concluded: “For homeowners and aspiring homeowners, a modest reduction in average prices can trigger wide-ranging emotions.

“The truth, though, is that house prices are a simple, scientific reflection of supply and demand.

“This modest 1.7% annual house price increase reflects the calming impact on demand of higher interest rates.”

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