Land Registry reveals 1.4% house price drop in 2023

Average house prices fell 1.4% during 2023, Land Registry data has revealed.

The latest Land Registry House Price Index for December 2023 property prices ended the year at £284,691, £4,000 lower than a year before.

However, there was some hope as average values rose 0.1% between November and December 2023.

London saw the biggest fall, according to the Land Registry, with average prices down 4.8% annually, while values were up by 1.2% - the highest level – in the North West of England..

On a monthly basis, the South East of England’s housing market experienced a 1.9% drop between November and December, while average prices were up 2.6% in the West Midlands.

Commenting on the report, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “These figures are even more interesting this month, not just because they include mortgaged and cash transactions unlike others, but because they reflect activity when the market was experiencing seasonal and pre-mortgage rate reduction jitters. 

“The resilience demonstrated at that time has continued since. Lower-than-expected and now stabilising inflation is improving prospects of further base rate cuts which will give buyers and sellers another boost."

Iain McKenzie, chief executive of The Guild of Property Professionals, added: “This is a clear but modest readjustment in prices that will provide some relief to buyers, but also won’t concern sellers that their home’s value has changed significantly. 

“All signs currently point to a recovery in house prices this year, with inflation and interest rate rises levelling off and stability returning once again to the market.

“Properties in Scotland have seen the biggest increase in prices, while London saw the sharpest fall. The UK capital has seen inflated house prices over the past decade, so the fall won’t be met with much surprise.

“The property industry has proven to be dynamic despite the challenges of the last year. Estate agents have been using this time to encourage more sellers onto the market and work with their clients to get the best price in their area.”