Average UK house price £14,500 lower in September but Northern Ireland named 'strongest performer'

The average UK house price was around £14,500 lower in September than 2022, however Northern Ireland was named as the ‘strongest performer’, according to a new index.

Data compiled by Nationwide Building Society recorded widespread house price falls across the UK, and at £257,808, the average values remained 5.3% lower than a year earlier. This was around the same as the annual percentage drop it had recorded in August.

Looking across the UK, the South West of England was identified by Nationwide as the weakest performer for house price growth in the third quarter of this year, with the average property price there falling by 6.3% annually.

However Northern Ireland was named as the strongest performer, with percentage price falls there being more modest than elsewhere in the UK. The average house price in Northern Ireland fell by 1.8% in the third quarter of this year compared with a year earlier.

Some experts suggested however that the house price downturn may only have a few months left to run, amid rising wages and signs that fixed mortgage rates are easing.

Nationwide said house prices stalled month-on-month, with a change of minus 0.0% recorded, following a 0.8% monthly fall in August. However highlighted that there were signs that buyers are favouring smaller properties such as flats.

Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth was unchanged at -5.3% in September. Prices were also flat over the month, after taking account of seasonal effects, following the 0.8% decline seen in August.

“Housing market activity remains weak, with just 45,400 mortgages approved for house purchase in August, c.30% below the monthly average prevailing in 2019 before the pandemic struck. This relatively subdued picture is not surprising given the more challenging picture for housing affordability. For example, someone earning an average income and purchasing the typical first-time buyer home with a 20% deposit would spend 38% of their take home pay on their monthly mortgage payment – well above the long-run average of 29%.

“However, investors have marked down their expectations for the future path of Bank Rate in recent months amid signs that underlying inflation pressures in the UK economy are finally easing, and with labour market conditions softening. This in turn has put downward pressure on longer term interest rates which underpin fixed rate mortgage pricing. If sustained, this will ease some of the pressure on those remortgaging or looking to buy a home.”

Here are average house prices in the third quarter of 2023, with the annual decrease, according to Nationwide Building Society:

– Northern Ireland, £180,668, minus 1.8%

– North East, £156,051, minus 2.0%

– West Midlands, £241,130, minus 2.4%

– North West, £205,553, minus 3.5%

– London, £514,325, minus 3.8%

– Scotland, £176,814, minus 4.2%

– Outer Metropolitan (includes swathes of Buckinghamshire, Hertfordshire and Surrey), £416,365, minus 4.4%

– Yorkshire and the Humber, £198,030, minus 5.4%

– Outer South East (includes parts of Bedfordshire, Oxfordshire and East Sussex), £334,215, minus 5.4%

– Wales, £202,065, minus 5.4%

– East Midlands, £228,373, minus 5.5%

– East Anglia, £273,066, minus 5.6%

– South West, £301,600, minus 6.3%