There’s been a lot of headlines and forecasts about house prices this year, and if they’re going to fall significantly. Mortgage rates started to climb in 2022 as the Bank of England tried to combat stubbornly high inflation. There’s also been speculation about the impact of home-movers’ stretched affordability and how this might affect the housing market.
At the end of last year, the forecast from our property expert Tim Bannister was that we’d see asking prices dip over the course of 2023.
He said: “We’re heading towards a more even balance between supply and demand, but we don’t expect more significant price falls in 2023. This is reflected in our prediction of a relatively modest average fall of 2% next year.”
In terms of the annual average change on a national scale, this is looking pretty close to where we’ll end the year on.
You can read more about what’s happening in your area, as well as other housing market trends, in our monthly House Price Index.
Which areas have seen asking prices rise in a year?
Since October, the average asking price of a home has fallen in Wales, Scotland and each region of England. But when we compare prices to a year ago, they’ve actually increased in some areas of Great Britain. And as mortgage rates and the cost of living remain high, we’ve seen typically more affordable areas – where average asking prices are lower than the national average of £362,143 – see the biggest annual price growth.
| Region | Average asking price Nov 2023 | % change since Nov 2022 |
|---|---|---|
| North West | £255,107 | +2.5% |
| Scotland | £185,766 | +1.9% |
| North East | £181,829 | +1.3% |
| Yorkshire & the Humber | £242,367 | +0.2% |
| Wales | £254,192 | +0.1% |
In contrast, average asking prices have seen annual falls in the South East and South West regions of England, as well as in London, East and West Midlands, and the East of England.
What’s happening to mortgage rates at the moment?
You can keep an eye on the current UK mortgage rates for different deposit sizes here, and check how they compare to last week. Rates have continued to edge down since July this year, and after another Base Rate hold from the Bank of England in November, mortgage rates are expected to continue their downwards trend.
If you’re thinking of moving, a mortgage broker or adviser can talk through your specific circumstances to help determine the best lender for you, as well as explaining the type of mortgage that could be the best fit.
You can also apply for a Mortgage in Principle online, to give you an idea of how much you could borrow. It’s quick and free, and your credit score won’t be affected by your application.
The header image for this article was provided courtesy of Sanderson Young, Alnwick.
