The decrease proved to be higher than the estimate of a 2.3% decline for the 12 months to November 2023r.

According to the latest release, the average UK house price was at £285,000, a fall of £4000 when compared to the same time last year.

In England the average house price fell over the 12 months to December 2023 by 2.1% to £302,000, while Welsh house prices by 2.5% to £214,000 while Scotland’s house pricing fell by 3.3% to £190,000, according to the ONS.

In England, the North West saw the highest annual change of 1.2% for the 12 months leading to December 2023, while London saw the biggest ball of -4.8%.
Meanwhile, the ONS also released its CPI data showing no year-on-year change for January 2024 at 4.0%.

Industry professionals gave their take on the latest HPI data.

Gareth Lewis, managing director at MT Finance:

"These are the figures we were expecting, with a flat market and decrease in transactions resulting in softening values. It is no surprise given fluctuating rates and product availability last year.

“Since then, we have seen more consumer confidence, which has meant agents are busier, people are looking to transact and having conversations about buying and moving.

“As the next set of data comes through, we should see transactional volumes improve and values edge up as ultimately there is more demand.

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“What we don’t want to see is values go too high or too fast – the market needs a period of relative calm so that buyers and sellers can get back to transacting property in a measured way.”

David Reed, operations director at Antony Roberts:

“Since the start of the year, we are finding that the market for family houses in particular remains strong, with continued interest from potential buyers buoyed by new year plans.
 “The pause in base rate hikes and subsequent decline in mortgage rates is certainly helping boost buyer confidence in the market.”

Mobeen Akram, new homes director at Mortgage Advice Bureau:

“It’s pleasing to see that the latest statistics from the UK HPI demonstrate a continuous trend of positive movement.

“In fact, it’s been a promising start to the year for new homes, with increases in enquiry levels, a good mix of first-time buyers and home movers moving through the market, and improvements in affordability criteria from lenders.

“These new results might be an indication that pent-up demand from 2023 could be carrying through to 2024.

“We can see that not only has consumer confidence increased, but also that of housebuilders. If these results remain as they are and continue to improve, we may see a better first quarter - or even first half - than most developers anticipated.

“Despite inflation remaining the same, it’s important that we as an industry keep the momentum going, even if the market appears to be standing still.”