August 2023 Halifax House Price Index: A Closer Look at UK Property Trends

Let’s delve into the latest findings from the August 2023 Halifax House Price Index, just released today. The data reveals a 4.6% decrease in UK house prices compared to the same month last year.

In August, there was a noteworthy monthly decline of -1.9%, the sharpest drop since November of the previous year, following a period of relatively stable prices. While some seasonality typically occurs at this time of the year, these fluctuations are not unexpected, especially considering the rapid increase in mortgage rates seen in June and July.

The index indicates that house prices have fallen across all UK nations and the nine English regions over the past year, with regions in the north generally demonstrating more resilience compared to southern areas.

In summary:

• Average house price fell by -1.9% in August, the largest monthly fall since November 2022.
• Property prices dropped by -4.6% on an annual basis, from -2.5% in July, though prices were at a record peak last summer.
• Typical UK home now costs £279,569, down by around £14,000 over the last year, back to the level seen in early 2022.
• Average prices remain around £40,000 above pre-pandemic levels.
• Southern England and Wales seeing most downward pressure on property prices, Scotland showing greater resilience.

The next Halifax House Price Index is scheduled for release on Friday 6th October 2023.