Mapped: The highest and lowest average house prices in the UK at the end of 2023

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Average house prices in every area of the UK are revealed in a brand new index that claims that the market “beat expectations” in 2023 regardless of larger taxes, inflation and the wider price of residing squeeze.

Halifax’s House Price Index stated property values elevated by 1.7 per cent throughout the board in 2023, though some areas, comparable to South East England, noticed house prices fall considerably.

Meanwhile in different areas, comparable to Northern Ireland and North West England, the average worth of a house elevated in a welcome piece of information going into 2024 for these already on the property ladder.

Overall, average house prices rose by 1.1 per cent month-on-month in December – the third consecutive month-to-month rise. The typical UK house worth in December 2023 was £287,105, up from £282,305 in the similar month a yr earlier.

Kim Kinnaird, director, Halifax Mortgages stated that though there had been “encouraging” progress in the last three months of final yr,  this was preceded by property worth falls for six consecutive months between April and September.

She additionally warned that the progress “we have seen is likely being driven by a shortage of properties on the market, rather than the strength of buyer demand”. She added: “That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”

Northern Ireland noticed the largest yearly enhance in house prices by far, based on the Halifax index. The average worth of a house there in December 2023 was £192,153 – up 4.1 per cent from December 2022.

Scotland was in second place, with the average worth of a house there at £205,170 – up 2.6 per cent in the 12-month interval.

South East England, which has some of the most costly properties in the nation, recorded the largest fall in prices. The average worth of a house in the area in December was £376,804 – down -4.5 per cent.

South West England noticed the second-biggest drop, with the average property there costing  £293,067 – down. -3.9 per cent. See beneath for a full record of how every area fared.

Mortgage lenders have this week begun slashing charges in anticipation of the Bank of England slicing rates of interest in the spring as the financial outlook improves, making it cheaper to borrow cash.

Analysts say the market is “heating up” and {that a} worth conflict between lenders has already begun, however some owners nonetheless face a painful rise in their month-to-month prices when offers expire this yr.

On Thursday Moneyfacts, the monetary info service, stated the average price of a two-year deal had fallen from 5.92 per cent to five.87 per cent – the lowest stage for practically seven years.

But whereas mortgage charges have began to return down they continue to be a lot larger than individuals have been used to in latest years, with greater than 1,000,000 owners set for an increase in their month-to-month funds when offers expire this yr.

“The mortgage market may be heating up, but this won’t fully ease the pain for the roughly 1.6 million existing borrowers with cheap fixed rate deals expiring this year,”  Alice Haine, private finance analyst from Bestinvest, defined.

Lenders have priced in that the Bank will begin slicing rates of interest this yr and have been lowering their prices for months forward of an anticipated worth conflict as the financial outlook improves additional this yr.

Analysts count on charges to fall additional later in the yr. Polly Gilbert, chief advertising officer at Tembo Money, stated {that a} mortgage worth conflict was “likely” on the horizon as inflation and rates of interest fell.“How good to see interest rates finally moving in the right direction,” she instructed Sky News. “We’re seeing some frenzy beginning to build, it’s positive this time.”

First Direct grew to become one of the newest lenders to announce it was slicing charges, with offers beneath 4 per cent set to be obtainable from Friday. The announcement was made following charge cuts from different lenders this week, together with HSBC UK and Halifax.

Full record of areas:

East Midlands: £234,578, -2.6%

Eastern England: £325,634, -3.5%

London: £528,798, -2.3%

North East: £168,274, -0.9%

North West: £226,765, 0.3%

Northern Ireland: £192,153, 4.1%

Scotland: £205,170, 2.6%

South East: £376,804, -4.5%

South West:£ 293,067, -3.9%

Wales: £216,730,  -0.5%

West Midlands: £ 247,122, -1.4%

Yorkshire and Humber: £204,904, 0.1%