November 2023: Harrow Market: A Secure Long-Term Investment Amid Challenges

Wed 01 Nov 2023

The latest release of the UK HPI, which reports data up to July 2023 shows that by that month, the annual change in average UK house prices was 0.6%, down from 1.9% in June 2023. The average UK house price was £290,000, £2,000 higher than a year ago but £2,000 below the peak in November 2022. Buyer demand declined due to higher mortgage interest rates, and transactions fell by 16.3% year-on-year.

Meanwhile, the latest Halifax report for August showed that UK house prices saw their sharpest monthly decline since November, dropping by 1.9% to an average of £279,569, down £5,000 from July and returning to early 2022 levels.

“Higher interest rates are impacting demand, with a lag effect now affecting prices.”

On an annual basis, prices fell by 4.6%, the largest year-on-year decrease since 2009, yet this is in comparison to last summer's record-high prices. Higher interest rates are impacting demand, with a lag effect now affecting prices. The market is adjusting to the new reality of higher mortgage costs, and further declines are expected.

However, prices are still significantly above pre-pandemic levels which could make housing more affordable for first-time buyers. Despite these various challenges, the Harrow property market remains a safe long-term bet. As ever the best way to move is with the help of established local experts.