Property prices decreased by 2.1 per cent in the 12 months to November 2023, according to the Office for National Statistics.
This was the largest annual fall in house prices since 2011 and takes the average property price to £285,000 – down £6,000 in a year.
It was the third consecutive month of falls, after prices had fallen 1.3 per cent in October and 0.4 per cent in November.
National and regional picture
Average house prices decreased in England by 2.9 per cent to £302,000 in the year to November and fell in Wales by 2.4 per cent to £213,000.
But they increased in Scotland to £194,000, a rise of 2.2 per cent, and by 2.1 per cent to £180,000 in Northern Ireland.
House price movements ranged from a drop of 0.4 per cent in the North East to a fall of six per cent in London. However the highest average price was still in the capital, at £505,000.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “House price falls accelerated in November, as they endured the steepest drop in 13 years. It reflects just how dire things were at the tail end of the summer, when so many of these sales were agreed.
“While mortgage rates have fallen in the months since, we’re not out of the woods yet. The market still faces some serious challenges, which could pull prices even lower.”
Nick Leeming, chairman of Jackson-Stops, added: “2023 was defined by mortgage affordability pressures and a shift from immense competition, towards a smaller, more committed buyer pool.
“While higher mortgage rates will continue to weigh on the majority of buyers minds, falling inflation will sow the seeds for a busier start to the market in 2024.
“The 2024 property market is also likely to be impacted by an election. Always a divisive issue, housing is likely to be pushed up the political agenda with major parties both challenging for the hearts and votes of current and prospective homeowners.”
