House prices edge down as market cools, amid higher interest rates.
It’s time to take a look at the Halifax House Price Index for June 2023, which was published today.
The data shows that the average UK house price fell slightly in June (-0.1%) with a typical property now costing £285,932. This was the third consecutive monthly decline, albeit it a modest one.
The annual rate of house price growth fell to -2.6% (from -1.1% in May), which is the largest year-on-year decrease since June 2011.
With little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer (annual growth peaked at +12.5% in June 2022), supported by the temporary Stamp Duty Land Tax (SDLT) cut.
Furthermore, the index shows that New Build property prices are more resilient compared to existing homes (up by +1.9% annually), and Southern England is seeing the most downward pressure on property prices – at -3.0%, the annual fall in the South East was the largest since July 2011.
These latest figures suggest a degree of stability in the face of economic uncertainty, although the housing market remains sensitive to volatility in borrowing costs.
To summarise:
- Average house price fell by -0.1% in June, a third consecutive monthly decline
- House prices in June 2023 were 2.6% lower than the same month a year earlier
- Typical UK property now costs £285,932 (vs the peak of £293,992 in August 2022)
The next Halifax House Price Index is scheduled for release on Monday 7th August 2023.
