The e.surv Acadata House Price Index has revealed a moderation in the annual house price decline in December, marking a turn after consistent drops since June 2020.
The average sale price of homes in England and Wales completed in December fell by £13,150 or -3.5%, a lesser decline than in November’s -3.7%.
On a monthly basis, prices have seen an uptick by £550 or 0.2%, with the average price now at £362,187, similar to February 2022 levels.
Richard Sexton, director at e.surv, comments on the data: “Our data this month provides some light relief for homeowners.
“The continued fall in the rate of inflation and its subsequent impact on mortgage pricing is slowly beginning to feed into the housing market.
“This is the first time in the last sixteen months in which the annual rate has improved over the previous month.”
Looking forward, Sexton mentions the potential for more positive changes: “With no further anticipated interest rate rises predicted and perhaps cuts from as early as May and the prospect of a pre-election budget addressing housing market issues, we can expect borrowers to continue to benefit from lower mortgage rates as lenders fight for market share in a recovering market.”
Transaction levels, however, have hit the lowest point in seventeen years, signaling continued market caution amidst economic uncertainties. Despite these low levels, the slight improvement in annual rates may foreshadow a more stable market going forward.
