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Evening Standard
Evening Standard
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India Block

London house prices: the only two areas where property values rose in 2023

Just two areas of London saw house prices rise rather than fall in 2023, new data from Halifax has revealed.

The average house in Hillingdon, London's westernmost borough, had £22,677 added onto its value this year, a rise of 4.5 per cent. A house there now costs £529,229, on average.

It will be some welcome news to residents after Rightmove's annual happiness index ranked it last in the whole of the UK this year.

In east London, house prices in Newham rose by 2.8 per cent, adding £12,771 on to their value. The average Newham house is now worth £476,191.

The analysis, which looked at mortgage approvals from Halifax and Bank of Scotland, found that house prices in most areas around the UK stayed static.

In Havering, in outer east London, house prices were some of the flattest in the country dropping by just £59 — a change of zero per cent.

No London boroughs had the biggest drops in house prices reported Halifax, but according to the latest figures from the Land Registry, the average London house saw £16,000 wiped off its value last month.

Two areas in Yorkshire – Huddersfield and Bradford – saw the biggest rise in house prices in 2023 according to Halifax.

House prices in Huddersfield grew 8.7 per cent, and Bradford saw growth of 8.5 per cent.

This equated to a boost in house prices of £22,137 and £15,183 respectively.

House prices fell most sharply in Stoke-on-Trent, in the west Midlands, where a fall of 15 per cent saw £30,978 knocked off average house prices.

A drop of 14.1 per cent in Perth, Scotland, wiped £34,324 off of house prices.

"Across the UK, this year's market has been hit by the squeeze on mortgage affordability, but there's been a big difference in how house prices have performed in towns and cities across the country," said Kim Kinnaird, director of Halifax Mortgages.

"House prices can be swayed by many factors, from the number of homes for sale, the local jobs market, and services like education and public transport."

Despite falling house prices in 2023, Kinnaird said homeowners shouldn't be too worried.

"When buying a home is such a major financial commitment, it’s important to consider the longer-term trends," she said.

"Many homeowners will feel reassured to know that the average UK house price remains around £40,000 higher than before the pandemic.”

Accross the UK house prices fell by just one per cent, however Halifax has forecast another year of falling house prices.

The country's top mortgage lender predicts that house prices will fall a further two to four per cent in 2024, as households coming off fixed-rate mortgage deals feel the bite of higher interest rates.

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