Almost 4 in 10 UK homes register price falls over last 6 months by an average £7,700

UK’s homes worth over £10.7 trillion

We track the value of all 29 million homes in the UK, using the latest evidence from the housing market each month.

Our latest analysis finds that the combined value of all UK residential property reached £10.7 trillion in May 2023.

But the growth in home values over the pandemic years has now stalled. Property prices are rising very slowly in the face of higher borrowing costs and increased cost of living.

House values have started to fall over the last 6 months but these remain modest in scale given how much capital values have grown in recent years.

Homeowners thinking about moving will be seeing the headlines about house price falls - but national averages can be misleading when making decisions on your own home.

The reality is that market conditions vary widely by local area and property type. Track your home to see how its value is changing.

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2 in 3 homes worth more today than a year ago - but there are more price falls recently

2 in 3 homeowners saw the value of their home increase by at least 1% over the last 12 months. This slows to 1 in 3 over the last 6 months as weaker demand impacted home values.

Almost 4 in 10 homes (11.1 million) have recorded a fall in value by at least 1% over the last 6 months by an average of £7,700 (or 2.6%).

Homeowners gain £19 per day in the last year compared to £48 a day last year

This time last year, we reported that average UK home values increased by £48 per day during the pandemic from February 2020 to June 2022.

This has slowed to an average increase of £19 per day over the 12 months to May 2023, an average increase of £7,000 per property in total.

A larger proportion of homes are starting to fall in value over the last 6 months. For those seeing their home's value fall, the average reduction has been £1,200 since November 2022.

Most homes in the South of England are falling in value

The impact of home value changes is being felt differently across the country.

4 out of 10 homeowners in the North of England, Wales and the Midlands saw the value of their homes increase in the last 6 months.

On the other hand, just over a fifth of homes in London, the South East and the East of England increased in value within the same period.

It’s homes in southern England that are feeling the impacts of higher mortgage rates, as property prices are higher here.

House price falls in the UK remain modest but anyone serious about selling should speak to a local estate agent. They'll be able to give you an accurate assessment of what you might sell your home for in the current climate.

That said, there are homes still increasing in value, which highlights how much trends vary on the ground and between property types.  

Larger homes' value growth stalls

Larger homes became a popular buy over the pandemic as buyers prioritised space.

This has been shifting in recent months as buyers scale back their requirements in the face of higher borrowing costs. There is now growing demand for smaller properties such as flats and terraced homes.

Bungalows account for 8% of homes in the UK. 7 in 10 bungalows in the UK have recorded a drop in price since November 2022 as demand cools.

Bungalows in coastal locations in particular - such as Brighton, Norfolk and Southend-on-Sea - are seeing a decline in value.

There is still a pool of buyers interested in upsizing in 2023, but sellers of larger properties are likely to find prospective buyers negotiate harder on pricing.

Strong house price growth over the pandemic helped many owners of large homes grow equity. This will now limit the impact of price reductions without reducing their budget for their next move.

Which areas of the country have the most homes going up in value?

Our list of the top 10 postal areas with the highest proportion of homes increasing in value over the last 6 months is concentrated in postal areas across the North and Midlands. This is where housing remains affordable and less exposed to higher borrowing costs. 

The list features only one postal area in the South - Dorchester (DT) - where 46,000 homes have increased in value since November 2022. 

Four postal areas in Yorkshire and the Humber are seeing a large proportion of home rise in value: Halifax (67%), Wakefield (65%), Huddersfield (59%) and Bradford (52%).

Which locations have the most homes going down in value?

The highest concentration of homes falling in value over the last 6 months are predominantly coastal locations across the South of England.

These locations recorded a rush of buyers since 2020, pushing prices higher as people relocated or looked to commute longer distances to work. Our data shows over 50% of homes are falling in value in these areas as demand cools.

In addition there is one part of London - the West Central postcode area - where prices have also fallen due to weaker demand. However, this relatively small area is not a large housing market due to its location in the mixed mid-town area of Inner London.