UK house prices have increased for the third consecutive month.

The UK housing market is performing better than expected, despite the increase in interest rates.

The UK housing market has continued to perform well despite higher interest rates. Fresh figures have shown that prices have risen for the third consecutive month. Halifax's House Price Index (HPI) revealed that the average price of a property in the UK has increased by 1.7% annually, with the average home now worth £4,800 more than it was in December 2022.

The Bank of England raised interest rates 14 times, which led to an increase in the cost of mortgages for borrowers, causing a decline in house purchasing activity. As a result, prices initially cooled, but they have now stabilised following a number of consecutive interest rate holds.

According to the index, house prices rose by 1.1% across the country last month, bringing the typical home price to £287,105. London still has the highest average house price across all regions, at £528,798, although prices in the capital have declined by 2.3% on an annual basis. The south east had the most significant downward impact on house prices overall.

Halifax Mortgages' director Kim Kinnaird stated that the housing market grew by 1.7% on an annual basis in 2023, with properties averaging £4,800 higher than in Dec 2022. House prices increased due to a shortage of properties rather than strong demand. Kinnaird mentioned that the South East saw the most significant decline, with house prices averaging £376,804 (-4.5%).

In 2024, the UK property market will reflect economic uncertainty, and buyers and sellers will be cautious. House prices may decrease between 2% and 4% during 2024.