The cost of buying a house in London last month was the same as it was the year before, meaning property values have not increased in 12 months.
Halifax’s most recent House Price Index reported that annual inflation fell to zero per cent in January from 2.9 per cent in December. In comparison, yearly house price growth for the whole of the UK had reached 12.5 per cent in June.
Commenting on the drop in annual inflation, Kim Kinnaird from Halifax Mortgages stated: “We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years.”
Annual change has dropped in all regions, with the national growth falling to 1.9 per cent in January. Prices are still around £5,000 more in January 2023 than they were in January 2022 for the whole country.
However, in London, they remained the same as they were a year ago, which is good news for homebuyers looking for properties for sale in Hackney and other popular areas of the capital.
Ms Kinnaird noted the national annual growth is the lowest it has been for three years. Looking ahead to the rest of 2023, she predicted that prices may continue to fall due to higher mortgage rates resulting in a drop in buyer demand.
Jonathan Rolande, head of the National Association of Property Buyer, recently told City AM he believed there could be a decline in annual house prices of six per cent by the end of 2023.