House price growth at lowest level since 2020

House price growth over the last 3 months has dropped to 0.7%, the lowest level since February 2020 – but there are no price falls just yet. Here’s a closer look at what’s happening with UK house prices.
Key takeaways

House price growth was at 0.7% over the last 3 months, the lowest quarterly growth since February 2020

1 in 4 sellers are reducing their asking price and they’re now likely to sell at a 3% discount

Nottingham, Manchester and Bournemouth record the highest year-on-year house price growth in cities

Annual UK house price growth has slowed to 7.8%, bringing the average house price to £261,600.

The last 3 months has been the slowest rate of quarterly price growth (0.7%) since February 2020 as fewer people look to move.

At this stage, there have been no price falls in major cities or regions in the last three months. 

But we expect this to change, and we’ll soon see quarterly growth of 0% and then house prices falling in 2023.

“We still expect house price falls of up to 5% next year with 1 million sales and mortgage rates dipping below 5%,” says Richard Donnell, Director of Research and Insight at Zoopla.

“But the number of sales going through will remain buoyant for a range of structural, demographic and economic factors.”

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