UK house prices post first rise in four months

London: UK house prices rose for the first time in four months at the end of 2023, according to official data that affirms recent industry surveys pointing to the property market turning the corner.

The average price of a home rose to £284,691 (S$482,285) in December, a 0.1 per cent rise compared to the previous month, the Office for National Statistics (ONS) said on Wednesday (Feb 14), citing Land Registry records.

The figures suggest the housing market may be past the worst after a marked cooling in mortgage rates in recent months. More forward-looking industry data from lenders Halifax and Nationwide Building Society have already pointed to prices rebounding.

The ONS said prices fell 1.4 per cent in the 12 months to December, with the market defying predictions of a slump triggered by 14 back-to-back interest-rate rises by the Bank of England (BOE). It was still the worst year for the property market since 2008 when the financial crisis triggered a 15 per cent decline. Prices in London were down almost 5 per cent year on year in 2023.

“December saw demand pick up as mortgage rates decreased and 2024 has started with a tsunami of enthusiasm and enquiries from potential homebuyers,” said Stephen Perkins, managing director at broker Yellow Brick Mortgages.

“Though this data shows prices are down on an annual basis, it paints a picture of how the market was several months previously, and the picture now is really quite different.”