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Halifax House Price Index December 2022

  • UK house prices increased 2.0% YoY in December according to mortgage lender Halifax.
  • On a monthly basis, prices fell by 1.5% in December (vs -2.4% in November).
  • The average UK property now costs £281,272 (down from £285,425 in November).

House prices slow significantly

Source: Halifax, IHS Markit

Key trends 

  • The annual rate of house price growth eased to 2.0% in December, from 4.6% in November, indicating that the housing market has entered a slower period. 
  • The monthly fall in house prices of 1.5%, taking the average property price to £281,272. This was lower than the decline of 2.4% recorded in November despite the seasonal slowdown brought on by the festive period. 
  • All regions saw annual house price growth slow in December. 
  • The North East saw the greatest slowdown in annual growth, with house prices rising by 6.5% compared with 10.5% in November, bringing the average house price in the region to £169,980.
  • Eastern England (5.5% vs 7.2%), the West Midlands (7.3% vs 9.1%) and Wales (6.1% vs 7.7%) experienced the smallest declines in annual growth rate on the month. 
  • London saw house prices grow 2.9% YoY compared with 5.0% in November, bringing the cost of an average home to £541,239.


  • December saw soaring living costs and rising interest rates continue to put downward pressure on house prices across the country. 
  • The cost of the average home is still over 11% higher than at the beginning of 2021, as supply remains limited. 
  • The outlook for house prices will depend heavily on the trajectory of mortgage rates and household finances against a harsh economic backdrop, with a contraction in both supply and demand highly likely in early 2023. 
  • However, the prospect of inflation easing by the middle of the year as wholesale energy prices fall may strengthen buyer and seller confidence in the longer term.
  • House prices are forecast to fall around 8% during 2023. This would bring the cost of the average home down to April 2021 levels, a figure significantly higher than pre-pandemic levels.

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