For the first time since March 2012, house prices in England and Wales have experienced a decline, according to the e.surv House Price Index for August 2023.
The data shows a -1.3% annual drop and the average house price now sits at £369,127, a 0.2% decrease compared to July 2023.
Additionally, property transactions have reached their lowest level in 17 years.
Richard Sexton, director at e.surv, said: “August’s housing market has been hit by the cost-of-living crisis, leading to a -£755, or -0.2%, drop in prices for the month, the third largest of the year.” He added that “prices have been falling each month since November 2022.”
Sexton also noted some regional differences: “The market varies by area. Cash buyers remain active in high-priced regions.” On the broader financial landscape, he mentioned that “comments by Bank of England’s Andrew Bailey could signal some relief from increasing loan costs.”
Finally, Sexton emphasised perspective: “Despite recent declines, prices have risen £54,000, or 17%, since March 2020, indicating houses are still a solid investment.”
