The average house price increased 10.3% in November to £295,000, an increase of £28,000 more than the year before.
But the average price fell 0.3% compared to October 2022, according to data from the Office for National Statistics (opens in new tab) (ONS). This was the first monthly fall since October 2021.
The annual growth rate also slowed, falling from 12.4% the previous month.
England, Scotland and Wales all recorded a fall while London was notable for the weakest annual pace of price growth at 6.3% - this is less than half the rate in the North West of England where house prices rose 13.5%.
Mortgage rates have risen dramatically in the last few months. This is widely expected to cool activity in the property market: house prices are expected to fall over the next few months as buyers find it more difficult to borrow money or decide mortgage rates are too expensive which will force sellers to lower prices.
Commenting, Myron Jobson, senior personal finance analyst, interactive investor (opens in new tab), says: “Even though house price inflation has come down, it doesn’t mean that prices are falling. It just means that home prices aren’t rising as fast.
“Home prices have risen far more quickly than incomes, creating an affordability squeeze, and mortgage rates have risen to levels not seen since the financial crash. The likelihood of higher interest rates to combat high inflation means that affordability is likely to remain the top challenge for homebuyers – with the ongoing cost-of-living crisis scuppering deposit building efforts.”
Experts can’t agree on how far house prices will fall in 2023, or for how long, though two-thirds of economists expect falls of more than 4%, with most warning of near-double-digit declines, according to a survey by The Times (opens in new tab).
This could make 2023 the worst year for the housing market since 2009.
Related articles
-
-
Selling second-hand: do I need to pay tax?
If you sell on sites like eBay and Facebook – do you need to pay tax on money earned?
-
Broadband scams warning: scam calls cash in on upcoming price hikes
As broadband prices are set to hike from April, so are broadband scam - we explain how to spot the scams
-
Base rate rises to 4% - what it means for your money
The Bank of England has increased the base rate from 3.5% to 4%, marking the 10th rise in a row. We explain what this means for your mortgage, savings and loans
-
House prices drop for fifth straight month: 10 places least and most vulnerable to house price crash
As house prices drop for the fifth month in a row, we reveal the 10 areas of the UK most immune to falling property prices
-
Buying a house: the UK’s most expensive postcodes
Data from GetAgent has broken down the most expensive and cheapest postcodes in which to buy a property
-
Where you can find the happiest homes for less-than-average house prices - do you live in one of these happiness hotspots?
Could you live in an area with above-average happiness and below-average house prices?
-
Biggest January rise for house prices since pandemic
House prices have had their biggest January increase since before the pandemic, according to Rightmove, yet the number of homes for sale is historically low
-
How are mortgage payments calculated?
When looking at how are mortgage payments calculated you’ll need to factor in the size of the mortgage, the interest rate and how long it’ll last.
-
House selling costs and process explained
There's lots to think about when it comes to house selling costs, here we outline everything you need to factor into your budget
-
How much deposit do you need to buy a house?
If you’re wondering how much deposit you need to buy a house, it’s easy to get an idea by looking at your income and the property value and a mortgage calculator can help
