House Prices in the UK in 2023

House Prices in the UK in 2023
Photo by Gonzalo Facello / Unsplash

The UK housing market has been through a tumultuous period in recent years, with house prices soaring to record highs during the pandemic and then falling back in 2023. However, the market is now showing signs of stabilizing, and prices are expected to remain relatively flat for the rest of the year.

The average UK house price was £291,044 in August 2023, which was little changed from 12 months ago, but £9,000 above the recent low point in March 2023.

Summary of the UK housing market in 2023:

  • Average UK house prices rose by 0.2% in the 12 months to August 2023, down from 0.6% in July 2023.
  • The average UK house price was £291,044 in August 2023, which was little changed from 12 months ago.
  • House prices are still significantly higher than they were in 2019, when the average house price was £245,597.
  • The slowdown in house price growth is likely due to a number of factors, including rising interest rates, the cost of living crisis, and economic uncertainty.

Regional breakdown of house price growth in the UK in 2023:

  • England: Average house prices in England remained little changed (0.0%) over the 12 months to August 2023, down from an increase of 0.7% in the 12 months to July 2023. The average house price in England was £310,000 in August 2023, £9,000 higher than the recent low point in March 2023.Opens in a new windowwww.nationwidehousepriceindex.co.ukmap showing house prices in England
  • Scotland: Average house prices in Scotland increased by 1.1% over the 12 months to August 2023, up from an increase of 0.1% in the 12 months to July 2023. The average house price in Scotland was £194,000 in August 2023, £13,000 higher than 12 months ago.Opens in a new windowwww.fifeproperties.co.ukmap showing house prices in Scotland
  • Wales: Average house prices in Wales decreased by 0.1% over the 12 months to August 2023, down from an increase of 0.6% in the 12 months to July 2023. The average house price in Wales was £217,000 in August 2023, £1,000 lower than 12 months ago.Opens in a new windowwww.plumplot.co.ukmap showing house prices in Wales
  • Northern Ireland: Average house prices in Northern Ireland increased by 2.7% over the 12 months to Quarter 2 (Apr to June) 2023. The average house price in Northern Ireland was £174,000 in Quarter 2 (Apr to June) 2023, £4,000 higher than 12 months ago.Opens in a new window

House price growth in 2023

Opens in a new windowwww.schroders.comgraph showing the increase in UK house prices in 2023

This slowdown in house price growth has been attributed to a number of factors, including rising interest rates, the cost of living crisis, and uncertainty in the global economy.

Regional variations in house prices

Opens in a new windowwww.ons.gov.ukmap of the UK showing house prices in different regions

Outlook for the UK housing market

The outlook for the UK housing market in 2023 is uncertain. House prices are expected to remain relatively flat, but there is a risk that they could fall further if the economy weakens. However, if the economy recovers, house prices could start to rise again.

Factors that could affect house prices in 2023

A number of factors could affect house prices in 2023, including:

  • Interest rates: If interest rates continue to rise, this could make it more expensive for people to borrow money to buy a house, which could lead to a slowdown in demand and a fall in house prices.
  • The cost of living crisis: The cost of living crisis is putting a strain on household budgets, which could make it more difficult for people to afford to buy a house.
  • The global economy: If the global economy weakens, this could have a negative impact on the UK economy, which could lead to a fall in demand for houses.

Overall, the outlook for the UK housing market in 2023 is mixed. House prices are expected to remain relatively flat, but there is a risk that they could fall further. The market is likely to be volatile in the short term, but it is possible that it will start to recover in the longer term.

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