On an annual basis, the average sale price of completed home transactions in England and Wales in October 2023 fell by -4.1%, and now stands at £362,777, new data from e.surv has revealed.
This is the biggest fall in house prices since August 2009, when the housing market was recovering from the aftermath of the banking crisis of 2007.
The negative rate of change follows almost 14 months of consecutive drops in value, from a peak growth rate of +12.7% in August 2022.
The market was at that time experiencing buoyant demand following the Covid pandemic, and supported by historically low interest rates.
House prices have fallen by some -£1,600, or -0.4%, in the month of October 2023. Prices have now dropped to levels last seen in February 2022.
On a regional basis, the research found that all UK countries and areas continue to show negative movement in terms of price changes.
This month, it is the North East that is reporting the smallest fall in prices over the past 12 months, at -1.5%, relegating Yorkshire and the Humber to second place.
Richard Sexton, director at e.surv, said: “Our data this month shows that on an annual basis, the average sale price of completed home transactions using cash or mortgages in England and Wales in October 2023 fell by some £15,700, or -4.1%, and now stands at £362,777.
“However, notwithstanding this decrease we see from cash and mortgaged sales data, we can safely say the continued lack of supply will continue to support prices from any seismic fall. There are also significant regional differences within the headline data.
“The North East reports the smallest fall in prices over the last twelve months, at -1.5%, relegating Yorkshire and the Humber to second place.
“When we look more closely at London, the two boroughs with the highest rise in prices in September were the second and third most expensive boroughs in London, being the City of London, at +5.1% and the City of Westminster, at +3.6%.”
He added: “Despite the current dip in property prices, the market is supported by a robust labour market and improving affordability.
“Furthermore, the upcoming Autumn Statement could support sales volumes and pricing in the coming months if the government introduces supportive measures for both ends of the market, such as stamp duty relief for downsizers and assistance for first-time homebuyers.
“As such, we eagerly await the Autumn statement to see if it will include specific measures to support the market.”
