According to the latest UK House Price Index released this morning, the average UK house price was £285,000 in December 2023, up slightly (0.1%) compared to November 2023, but £4,000 lower than 12 months previously.
The slight month-on-month rise in house prices highlights cooler transaction levels as the market returned to more seasonality as many buyers focused on the festivities during this period; leaving only those most committed or those who absolutely needed to move to get on with the business of transacting.
This return to seasonality was also reinforced in today’s latest update which referenced the Royal Institute of Chartered Surveyors’ (RICS’) December 2023 UK Residential Market Survey which reported a decrease in buyer demand but a stable trend when it came to supply of new instructions coming to market.
Reflecting on today’s latest report, Jason Tebb, President of OnTheMarket, says: “December’s slight uptick in average property prices is in line with other surveys, reflecting softer transaction volumes as the market returned to seasonality and only the most committed of buyers and sellers eschewed the festivities in favour of moving.
Since the start of the year, the picture has improved with falling mortgage rates encouraging buyers and sellers to return to the market. Stock levels and new enquiries have risen as market stability and confidence has been boosted by expectations that the Bank will start cutting interest rates soon.
While inflation is still double the Bank’s target, it was softer than expected in January and is forecast to continue edging downwards, although there will be bumps in the road. Demand and activity levels are expected to strengthen but with affordability impacted by last year’s successive rate rises and the higher cost of living, sellers should take advice and come to market at a sensible level.”
