According to the report from the Office for National Statistics (ONS), average house prices fell by 2.1% per annum in November after falling by 1.3% per annum in October (revised from -1.2%). It was the third consecutive monthly decline and the steepest drop since 2011. Economists had expected prices to fall by 1.9% per annum. On a monthly and seasonally adjusted basis, the average house price declined by 0.4%, accelerating compared to October (-0.3%).
The ONS said that the average house price fell by 6,000 pounds compared to November 2022, to 285,000 pounds. Average house prices decreased in England (-2.9%, to 302,000 pounds) and in Wales (-2.4%, to 213.000 pounds), but increased in Scotland (+2.2%, to 194.000 pounds). London's average house prices remain the most expensive of any region in the UK, with an average price of 505,000 pounds. London is also the region with the lowest annual house price inflation, with average prices declining by 6.0% per annum (the lowest rate since 2009) after falling by 3.4% per annum in October.
Separate data showed that in December private rental prices paid by tenants in the UK rose by 6.2% per annum (the largest increase since the data collection started in 2016) after a similar increase in November. Annual private rental prices increased by 6.1% per annum in England, 7.1% per annum in Wales and 6.3% per annum in Scotland. Within England, London had the highest annual percentage change in private rental prices at 6.8% per annum, while the North East saw the lowest at 4.6% per annum.