Average UK house price falls by nearly £7,000 in one month

THE average price tag for a home tumbled by nearly £7,000 this month.

The drop of 1.9 per cent, to £355,177 from November, was higher than the 1.5 per cent 20-year average for the period around Christmas.

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It comes after last week mortgage rates on an average two-year fixed deal fell below six per cent for the first time since mid-June.

The report by Rightmove found prices are down 1.1 per cent nationally compared to 2022, and the property website predicts another one per cent dip next year.

The site said sellers looking to “price competitively” in a buyers’ ­market was helping lower property values.

Tim Bannister, Rightmove’s director of property science, said: “Further price falls beyond the usual seasonal trends that we’d expect at this time of year signal that some new sellers are continuing to act on the advice of agents to price competitively.

“We entered this year under a cloud of uncertainty, as the fallout from the autumn mini-budget filtered through to lower activity levels.

“High mortgage rates which have added to already-stretched buyer affordability have been a challenge throughout 2023 and this is likely to carry into next year.

“However, for now, there appears to be more calm and certainty heading into 2024, and the annual fall of 1.1% in asking prices highlights the market’s much-better-than-predicted resilience this year.”

Mr Bannister added: “With mortgage rates more settled and on a slow downward trend, potential movers who have been biding their time and waiting for calmer market conditions may decide to act in the early part of next year.

“Indeed, there’s always a big post-Christmas upturn in Rightmove traffic, with early-bird buyers starting their search on Boxing Day.”

This post first appeared on thesun.co.uk