House prices expected to fall by 5% in 2023

House prices could fall by 5% next year as rising mortgage rates weigh on buyer demand.

Woman looking in an estate agent's window
The average estate agent has 23 homes for sale
(Image credit: © Alex Segre / Alamy )

House prices are predicted to fall by up to 5% after months of intense growth, according to Zoopla’s latest house price index. Earlier this year, the Office for Budget Responsibility predicted that house prices could go down by as much as 9% by 2024.

The online estate agent reported a 7.8% increase in house prices year-on-year in November – however buyer demand fell by 44% following the sharp increase in mortgage rates after Kwasi Kwarteng’s mini-budget in late September.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.