UK house prices were unchanged on a monthly basis in December, but down annually, according to figures from Nationwide.
The Nationwide house price index revealed that over the past 12 months, non-seasonally adjusted prices fell 1.8% in December. This is a softening from a 2.0% fall in November – and 3.3% in October.
However, December’s decline was slightly steeper than the 1.4% pencilled in by the market. Compared to their all-time high in late summer 2022, house prices were 4.5% lower.
On a monthly basis, the Nationwide index showed no change in seasonally-adjusted UK house prices in December, after a 0.2% rise in November from October. December’s reading was in line with FXStreet-cited market consensus.
In December, the average UK house price stood at £257,443, down slightly from £258,557 the prior month, without seasonal adjustment.
Commenting on the December figures from the index, Robert Gardner, Nationwide’s chief economist, says: “Housing market activity was weak throughout 2023. The total number of transactions has been running at circa 10% below pre-pandemic levels over the past six months, with those involving a mortgage down even more, circa 20%, reflecting the impact of higher borrowing costs. On the flip side, the volume of cash transactions has continued to run above pre-Covid levels.
“Even though house prices are modestly lower and incomes have been rising strongly, at least in cash terms, this hasn’t been enough to offset the impact of higher mortgage rates, which in recent months were still more than three times the record lows prevailing in 2021 in the wake of the pandemic.”
