19 October 2023
According to the latest figures, average UK house prices increased by only 0.2% in the 12 months to August 2023, down from 0.7% in July 2023.
The average UK house price was £291,000 in August 2023 which has changed very little from 12 months ago, but is £9,000 above the recent low point in March 2023.
Commenting on the latest figures Peter Graham, partner and head of RSM UK’s real estate and construction team in the North West, said: ‘Property prices were flat over the last 12 months as a result of rising interest rates and high inflation putting downward pressure on prices. This has been offset by the chronic shortage of supply. Whilst prices are stable, the government does need to look at reforms to resolve the supply issues to kickstart the housing market. It should be noted that house prices are still nearly 25% higher than they were at the start of the pandemic.’
He added: ‘The autumn statement on 22 November does give the chancellor an opportunity to reduce stamp duty land tax (SDLT) costs which will remove some of the financial pressure of buying a new house. This would be particularly helpful for first time buyers who are struggling with affordability due to the highest interest rates for fifteen years.’