Average UK house price expected to fall by 8% over 2023

(Alliance News) - According to data from Halifax on Friday, the average UK house price fell in December against the prior month, though at a more moderate decline than seen previously.

The average UK house price was GBP281,272 in December, a fall of 1.5% against the previous month. In November, house prices fell by 2.4% to GBP285.425.

Against the previous year, house prices grew by 2.0%.

Halifax said that the cost of the average home remains greater than it was at the start of 2022, however, and more than 11% higher than house prices at the beginning of 2021.

"As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8.0% over the course of the year," Halifax commented.

An 8.0% decline in house prices would mean the average property price returns to April 2021 prices, which is still significantly above pre-pandemic levels.

By Heather Rydings, Alliance News senior economics reporter

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