Uk House Prices Increased By 9 Yy In December

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Uk House Prices Increased By 9 Yy In December

UK House Prices Increased By 9.8% Y/Y In December

According to the latest data from the Office of National Statistics, house prices in the United Kingdom (UK) increased by 9.8% y/y during the month of December. This increase was based on the comparison made for the month of December 2021.

During the month of November, the increase in house prices was around 10.6% y/y. So on that front, it seems that the house prices have indeed decreased during the month of December.

Low Housing Demand In The UK

According to experts, the reason why we see a reduction in house prices is due to the lower demand. In addition, the high cost of living, inflation, and higher interest rates have also played a major role in the UK's housing market.

Out of all the UK regions, it was London that saw the weakest price of rice on an annual basis. In fact, the increase in house prices located in London was only 6.7%.

This reveals that house prices in London are increasing at a slower pace than in the rest of the country. This could have something to do with a few people moving to live in London. After all, less demand for houses means an increase in the prices will be slower!

And according to a recent poll of economists, house prices are expected to fall by 5% in 2023. Similarly, the analysts working at Nomura are forecasting a drop of 15% somewhere around mid-2024.

But if the interest rates and the inflation can be brought under control, this would the house prices in London and the rest of the UK regions.

However, the chances of that happening in 2023 are very low as the ground reality is still the same as it was in 2022. We have the Ukraine war, high energy prices, and high interest rate policy by the Bank of England. And the chances of any of that going away in 2023 are not high at all!

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