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UK house prices fall by 1.1% since February 2022

Within the last year (February 2022-February 2023), house prices in the UK have dropped by 1.1%. This is the biggest decrease increase in the space of a year since November 2012.

This will definitely have a big effect on mortgages and the UK housing market . If you are considering selling your home, you may be left considering if now is the right time to do so. Buyers also might be wondering whether they should take advantage of lower pricing now, or hold off in case prices drop further.

In this blog, we’re looking in more detail at why property prices have fallen and whether now is a good time to buy or sell a home in the UK.

In this section (UK house prices fall by 1.1%):

According to Nationwide, the average house prices in the UK have fallen to £257,406 (3.7% lower than August 2022). This price is £900 lower than January (0.5% decrease) with prices having dropped consistently in the last 6 months.

It is likely that prices have fallen over the last 6 months in particular because of increasing inflation and mortgage interest rates towards the end of 2022. Bank of England interest rates rose consistently throughout last year, trying to reduce the effects on inflation from the Covid-19 pandemic. This continued following last years Autumn mini budget which caused chaos in the UK economy.

Many buyers will have been holding off on purchasing until lower rates became available again, meaning those selling have had to reduce prices to try and make a sale.

Should I sell my house now UK?

If you have been thinking about selling your home, you’re probably debating now if it is a good time to sell. The cost of living crisis has led to constant interest rate rises recently, and buyers have been left wary. Sellers will have found it much harder to sell in recent months and many have had to drop their asking prices.

It is possible house prices could increase again but with mortgage rates still higher overall, but there is no certain timeline to when the mortgage market will fully stabilise again. It is possible prices may even fall further over the course of 2023.

Is now a good time to buy a home?

With house prices having dropped, it could be a good idea to buy sooner rather than later. Waiting to buy until later in the year does increase the risk of prices rising again in the meantime.

Whether now is the best time for you will of course depend on your own circumstances. If you can afford to buy (you may even have seen the property you want already), you might want to seriously consider it.

How to find a good mortgage broker

If you want to take advantage of lower prices, a good first step is to speak to a qualified mortgage broker. A mortgage broker with the right background and experience can offer vital support to saving on your mortgage, especially if you have never applied before.

Our highly skilled brokers will be able to compare available mortgages across the market to make sure you get the best possible mortgage deal. We can compare rates from over 50 of the UK’s best mortgage lenders.

They can recommend the best lender for the type of mortgage you need and support you through the mortgage application process. We are specialists in many areas including bad credit, self-employed mortgages, first time buyer mortgages and more.


Gov.uk – UK House Price Index: reports

Office for National Statistics – UK House Price Index: November 2022

Financial Conduct Authority – Mortgage lending statistics – December 2022

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