Housing Comment February 2023
House prices ‘stabilising’ after falls over past two months
Halifax HPI says prices were static in January as the market settles down after successive drops prompted by the mortgage crisis.
House prices stabilised in January after price falls in the previous two months, the latest Halifax HPI reveals.
The monthly change last month was 0% compared to drops of 1.3% in December and 2.4% in November.
Quarterly figures show a 3.6% price reduction as the market cools following a bumper few months.
Latest figures also say that the annual increase was 1.9%, down from 2.1% last month, and the lowest in three years.
Kim Kinnaird, Director, Halifax Mortgages
Kim Kinnaird, director of Halifax Mortgages, says: “The start of 2023 has brought some stability to UK house prices, with the average house price remaining largely unchanged in January at £281,684, a very small decrease on December.
“We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years.
For those looking to get on or up the housing ladder, confidence may improve”
“As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand.
“For those looking to get on or up the housing ladder, confidence may improve beyond the near-term. Lower house prices and the potential for interest rates to peak below the level being anticipated last year should lead to an improvement in home buying affordability over time.”
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