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Halifax House Price Index May 2023

  • UK house prices fell 1.0% YoY in May, the first annual decline since 2012, according to mortgage lender Halifax. 
  • House prices in the south of England are under the most pressure. 
  • Average UK property now costs £286,532 (up from £286,662 in April).

Annual rate of growth falls to -1.0%

Source: Halifax, IHS Markit

Key trends 

  • The annual rate of house price growth was -1.0% in May, the first annual decline since December 2012 (-0.1%). This reflects cooler market conditions compared to strong house price growth last year.
  • House prices remained largely unchanged in May on a monthly basis, falling by £130 compared to April.
  • Prices remain £5,000 up since the end of last year and £25,000 higher than two years ago. 
  • Prices fell on an annual basis across southern England, with the South East (=1.6%), South West (-1.4%) and Greater London (-1.2%) recording notable declines.
  • All other UK areas saw annual price growth weaken in May, except for Wales (+1.1%). West Midlands (+2.7%) and Yorkshire & Humberside (+2.3%) were the best performing regions in May.


  • Although the housing market saw a small upturn at the beginning of the year, this has now been subdued as the impact of successive interest rate rises drives mortgage costs higher.
  • The prospect of further rate rises, driven by persistent inflation, will continue to dampen buyer confidence in the months to come. 
  • However, wage growth remains strong, and its persistence should provide upside support to buyer demand in the near-term.

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