UK house prices will fall 8% in 2023 - Halifax predicts - REUTERS
UK house prices are expected to fall by around 8% next year to around £258,000 as higher borrowing costs continue to push up mortgage costs, according to Halifax.
The mortgage lender said house prices flattened off from mid-year, and fell near the end of the year in 2022, with the downward trend set to continue into 2023.
"To put this into perspective, such a fall would place the average property price back at roughly the level it was in April 2021, reversing only some of the gains made during the pandemic," Andrew Asaam, homes director at Halifax, said.
In April 2021, the average house price stood at £258,295. That is £27,000 lower than the current average of £285,579.
First-time buyers have struggled to get on the housing ladder, with the typical UK house price increasing by 71% over the last decade.
A new record high average property price was set in August 2022, hitting £293,992, according to Halifax.
Halifax said the North East of England saw the highest rate of annual property price inflation of any UK region or nation in the year to the end of November, with a rise of 10.5%.
The South East of England recorded the biggest price increase, up by £28,068 over the last 12 months to the end of November.
Meanwhile, London recorded the slowest rate of annual house price growth at 5.2% over the last year to the end of November. But at £549,160, the capital still has by far the most expensive average UK property price.