Average house prices have been falling for much of the year but some areas are bucking the trend.
High mortgage rates have pushed property demand down this year and house prices indices from Halifax, Nationwide and the Office for National Statistics have all recorded drops in average house prices.
But these figures are national and don’t reflect local markets so while the latest Halifax House Price Index showed average values were down by 1% annually in November, some parts of the UK have seen rises of up to almost 9%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
“Across the UK, this year's market has been hit by the squeeze on mortgage affordability, but there's been a big difference in how house prices have performed in towns and cities across the country,” says Kim Kinnaird, director at Halifax Mortgages.
“House prices can be swayed by many factors, from the number of homes for sale, the local jobs market, and services like education and public transport.”
Where have house prices grown in 2023?
Analysis of UK house price data by Halifax shows while much of the market has dropped this year, average values in Huddersfield are up 8.7% annually, a £22,137 rise to £275,438.
The figures are based on Halifax and Bank of Scotland mortgage approvals in the 12 months to October 2023, so are a reflection of the value of transactions in this period rather than what your home may actually be worth. But it still provides a useful indication of value.
The research also found that average values rose by 8.5% in Bradford or up £15,183 to £193,468.
|Average house price
The biggest fall in average house prices was in Stoke-on-Trent, down 15% or £30,978 to £174,910 followed by Perth in Scotland where typical prices dropped 14.1%.
“Buying a home in Huddersfield or Bradford may well have cost considerably more in 2023 than it did last year, but that’s not the case in Stoke-on-Trent, for example, which might now be offering better value for money,” adds Kinnaird.
“However, when buying a home is such a major financial commitment, it’s important to consider the longer-term trends. Many homeowners will feel reassured to know that the average UK house price remains around £40,000 higher than before the pandemic.”
Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and The i newspaper. He also co-presents the In For A Penny financial planning podcast.
How to invest in solving the housing shortage
Feature Buy-to-let may be losing its shine but there are other ways to invest in the property market
By Marc Shoffman Published
Financial Conduct Authority launches £600k campaign to encourage savers to switch – how much more could you earn?
News The City watchdog wants to encourage more people to switch their savings
By Marc Shoffman Published