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In 2023, Property Values Increased Only in Two London Areas: A Comprehensive Analysis of House Prices.

In 2023, only two districts in London experienced an increase rather than a decline in house prices, as indicated by new data from Halifax.


Hillingdon, situated in the westernmost part of London, saw a rise of 4.5%, with the average house value increasing by £22,677 to reach £529,229. This positive development comes as a contrast to Hillingdon being ranked last in the UK in Rightmove's annual happiness index this year.


In east London, Newham observed a 2.8% increase in house prices, adding £12,771 to their value. Consequently, the average house price in Newham reached £476,191.


An analysis based on mortgage approvals from Halifax and Bank of Scotland revealed that house prices remained largely stable in most areas across the UK. In Havering, located in outer east London, house prices showed minimal movement, dropping by just £59, resulting in a change of zero per cent.


While no London boroughs reported the most substantial declines in house prices according to Halifax, the latest data from the Land Registry indicated an average decrease of £16,000 in London house values last month.


Halifax identified Huddersfield and Bradford in Yorkshire as the areas experiencing the highest house price increases in 2023, with growth rates of 8.7% and 8.5%, respectively. This translated to increases of £22,137 and £15,183 in house prices.


Conversely, Stoke-on-Trent in the West Midlands witnessed the sharpest decline in house prices, with a 15% fall resulting in a £30,978 reduction in average house prices. Perth, Scotland, experienced a 14.1% drop, wiping £34,324 off house prices.


Kim Kinnaird, Director of Halifax Mortgages, noted the impact of various factors on house prices, including the number of homes for sale, the local job market, and services like education and public transport.


Despite the decline in house prices in 2023, Kinnaird advised homeowners to consider longer-term trends and highlighted that the average UK house price remains approximately £40,000 higher than before the pandemic.


Although house prices in the UK fell by just one percent in 2023, Halifax predicts a further decline of two to four percent in 2024. This forecast is attributed to households transitioning from fixed-rate mortgage deals and facing the impact of higher interest rates.



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