Despite significant increases in mortgage rates, house prices in the UK were only 1.8% cheaper at the end of 2023 compared to the previous year. This minimal decline comes as prices in Scotland and Northern Ireland actually rose during the same period.
Steady Average House Price
The average house price in December remained at £257,443, the same as the previous month. This stability indicates that the impact of higher borrowing costs did not have a significant effect on overall prices.
Lower Prices in England and Wales
In England, house prices were down 2.9% compared to the previous year, while in Wales, prices dropped by 1.9%. These decreases suggest that the market in these regions experienced a slight decline despite the overall stability in the UK housing market.
First-Time Buyers Willing to Compromise
A recent survey revealed that seven in 10 first-time buyers are willing to make compromises in order to enter the property market. This includes accepting a smaller garden, a different location, or a lower number of bedrooms. In fact, 67% of respondents expect their first home to be on the smaller side.
Overbidding to Fulfill Property Dreams
Interestingly, 47% of those surveyed indicated that they would consider overbidding in order to make their property dream a reality. This suggests that many buyers are willing to go above and beyond to secure their desired home in a competitive market.
Overall, despite the rise in mortgage rates, UK house prices have shown resilience, with only a slight decline in certain regions. This demonstrates the ongoing demand and value of the housing market in today's competitive digital world.
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