The House of Commons Library has just published its Key Economic Indicators for the Housing Market.
It can be seen here, and in summary shows that the UK House Price Index indicates a 1.2% decrease in house prices between October 2022 and October 2023. On a seasonally adjusted basis, average house prices also decreased by 0.3% between September 2023 and October 2023. Regional variations were observed, with house prices growing in Scotland, the North East, and Northern Ireland. However, prices fell in all other regions, with the sharpest declines in London, Wales, and the East of England.
Bank of England data on mortgage approvals for house purchases, a leading indicator of house sales, showed a record low during the lockdown in May 2020. Approvals increased significantly towards the end of 2020 but have fallen since then. In November 2023, mortgage approvals were up 10% compared to a year ago and up 5% from October 2023, with 50,067 approvals.
Housing starts and completions saw a sharp decline in Q2 2020 due to the coronavirus lockdown but have since increased. In Q2 2023, there were 67,600 house building starts in England, driven in part by house builders bringing forward projects to avoid compliance costs associated with new building regulatory standards introduced in June 2023. House building completions in Q2 2023 were 39,620, relatively stable compared to the previous quarter but a 12% decrease compared to the same quarter in 2022.
