Biggest House Price Fall in 2 Years

The Nationwide property index has today published figures for house prices in the UK.  Nationwide suggests house prices fell by a massive 1.4% from October to November 2022.

This is the biggest monthly fall in house prices in 2 years i.e., since the dark days of Covid-19 lockdown issues in winter 2020.

Overall, average yearly house price increases did climb by 4.4% pa but fell over the year from 7.2% pa in October.  This is not a reflection of today’s position but the fact that house price growth continued to climb between November 2021 and summer 2022.  Annual price increases still include the higher figures from earlier in the year but have been falling back ever since, hence the annual price increase now down to 4.4% pa, below the UK average property growth rate.

The average house price in the UK is now £263,788 down from £268,282 in October 2022.

Conclusion

Interest rate rises and costs of living (inflation) increases are squeezing all our pockets.  Equally, given recent interest rate rises, first time buyers are putting off buying property now and renting pending expected property price falls in 2023 and 2024.

There has also been an increase in the number of people renting despite landlords also increasing rents due to interest rate rises, fire safety expenses and energy performance upgrades to properties to comply with new energy performance certificate requirements of a minimum grade C from 2025.

The property market slowdown will continue over the coming year or two.