Will house prices drop in 2023? | The Sun
IT'S always a good idea for both sellers and buyers to keep an eye on house prices – but will they rise or fall this year?
Average UK house prices increased by 6.3% in the 12 months to January, according to the Office for National Statistics (ONS).
The average UK house price was £290,000 in January 2023, which was £17,000 higher than 12 months earlier.
Despite this, annual house price growth has slowed.
House prices recorded a monthly fall of 0.6% in January 2023, following a 0.4% drop in December 2022.
This is because a significant proportion of sales completed at the beginning of the year had been impacted by a sudden rise in mortgage rates caused by the mini-budget.
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This meant that many buyers had to renegotiate prices as a result of changing affordability.
More recently, Halifax reported that the average house price fell by about £1,000 in April, following three months of increases.
Below, we take a look at what could happen to house prices over the course of the year.
Are house prices likely to go down in 2023?
Tim Bannister, director of property science at Rightmove, said house prices could go up towards the end of the year despite having fallen in recent months.
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He previously said: "We expect that the full effect of affordability constraints and last year’s mortgage rate rises will hold back some segments of the market in the first half of the year.
"But our leading market indicators may start to identify some green shoots of growth that will go on to strengthen in the second half of 2023."
However, Nick Morrey from Coreco Mortgages, said house prices could drop.
"Given prices have risen 20% or more since the first coronavirus lockdown, a correction was always on the cards," he added.
"Current predictions are for a reduction in prices of around 10% but that would only put prices back to where they were in around January last year.
"Plus, despite the cost of living crisis we are seeing plenty of enquiries for purchases and properties for sale are still in short supply in many areas."
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