UK house prices fall at fastest pace in more than a decade

In November, UK house prices experienced the swiftest decline in over a decade, primarily influenced by a significant downturn in London, as indicated by official data reflecting the repercussions of elevated interest rates on the property market.?

?According to the Office for National Statistics, average prices contracted by 2.1% in the year leading up to November 2023, in contrast to a 1.3% decline in the 12 months preceding October. This marked the most substantial annual drop since June 2011.?

?Between October and November, house prices saw a 0.8% decrease, bringing the average property value to ￡285,000—￡6,000 less than in November 2022.?

?London emerged as the weakest-performing region in the UK, witnessing a 6% annual contraction, the most significant since 2009. However, despite this decline, the capital retained its status as the most expensive part of the country, with the average home costing ￡505,000.?

?The decline in prices is a manifestation of the impact of heightened mortgage rates on the housing market. The Bank of England's decision to raise interest rates, moving from a record low of 0.1% in November 2021 to a 15-year high of 5.25%, was aimed at addressing elevated inflation concerns.?