House prices fell in more than half of local council areas across the UK in January, according to official figures, as the country braces for a housing market slump in 2023.
Average UK property prices were down by 1.1% between December and January, dropping from £293,200 to £289,800. The figures are from the official UK house price index, published by the Office for National Statistics (ONS) and HM Land Registry.
The figures were published on Wednesday (22 March) – the same day that the ONS released figures showing a surprise rise in inflation in February, with the Consumer Prices Index jumping to 10.4%. Today (23 March) the Bank of England raised interest rates again, from 4% to 4.25%, a move that will push many households’ mortgages up.
While Zoopla, Rightmove and Nationwide have published more recent house price data, the government data is the most comprehensive, and is based on the final price paid rather than asking prices or mortgage approvals data.
We’ve analysed the latest data, to see what has been happening to property prices on a local level. Of 373 council areas in the UK, 214, or 57%, saw average prices drop in January compared to December.
It was not a uniformly gloomy picture for homeowners. In North East Derbyshire, prices rose by 6.4%, or more than £15,000, while in the Isle of Anglesey they rose 4.2%, or £10,000.
Despite the drop across the UK, prices are still up by 6.3% year-on-year. HM Land Registry said it expects a downward trend in the market to continue “for a while longer as the market adjusts to the higher interest rate environment”, with the Royal Institution of Chartered Surveyors (RICS) reporting a “muted market backdrop” with new buyer demand, sales, fresh listings and prices all down.
NationalWorld has created a collection of interactive tools that will show you what is happening to house prices near you, including a breakdown by the type of property (detached, semi-detached, terraced and flats) and whether the properties were bought by first-time buyers.
Below are the 27 areas where the ONS said house prices fell the most in January.
Read more: What does spring budget mean for the housing market 2023? Zoopla’s research expert explains
1. City of London
House prices in City of London fell by 7.1%, from £95,3205 to £885,407
2. South Hams, Devon
House prices in South Hams were down by 6.2%, from £419,751 to £393,684
3. Bridgend, Wales
Prices in Bridgend fell by 5.1%, from £214,081 to £203,245
4. Powys, Wales
House prices in Powys fell by 4.7%, from £262,356 to £250,089