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South suffered sharper house price contraction in 2023 ‒ Zoopla

  • 13/02/2024
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South suffered sharper house price contraction in 2023 ‒ Zoopla
Homes in the North benefitted from a clear North/South divide on house prices last year, new analysis from Zoopla has found.

The study found that lower property prices in the North “cushioned the impact” of higher mortgage rates, meaning more homes registered increased values over the year compared with homes in the South.

For example, around 17 per cent of homes in the North West registered gains of at least five per cent over the year – around half a million homes. That’s the highest proportion and ahead of Scotland, where 16 per cent of properties increase in value by upwards of five per cent.

In total, around six in 10 homeowners enjoyed the value of their property increasing across the year.

Of homeowners who saw their property increase in value last year, the average jump was found to be £7,800. That works out at around £21 per day, and is 60 per cent lower than the typical increase recorded in 2022.

The property portal suggested that around three million homeowners saw their property increase by at least five per cent across 2023.

Zoopla noted house sales starting to bounce back at the beginning of 2024.


Where house prices fell in 2023

At the other end of the scale, around four in 10 UK homes fell in value by at least one per cent over the year, with a third dropping by five per cent or more. That’s two-and-a-half times the number of homes seeing such a sizeable drop compared with the previous year.

The South of England was most likely to feel the impact of these reductions, with almost one in five (18 per cent) homeowners in the East and South East registering falls of five per cent or more.

This equated to an average drop of £11,500 in the East and £13,200 in the South East, in cash terms. 

Zoopla has predicted average house price falls of two per cent across 2024, but emphasised this will vary based on location, with the South continuing to be most at risk of higher-value drops.

Izabella Lubowiecka, senior property researcher at Zoopla, said: While national house prices indices pointed to modest house price falls over 2023, our property-by-property level tracking of home values shows that most homes saw their value unchanged or slightly higher over the year. Value reductions were focused in southern England, while modest gains were recorded in lower priced, more affordable housing markets.”

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