Average price of London homes dropped by more than £11,000 in January, according to new data

 New data issued by Halifax has revealed that the average London house price dropped by more than £11,000 in January.
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Figures released this week by Halifax revealed  house prices in the capital dropped in January by more than £11,000. Britain’s biggest mortgage lender has released the figures as part of its monthly house price index.

The data shows that the average house price in London dropped by £11,073 from £541,472 in December to £530,396 in January. This means that the average home in the capital lost more than £350 a day over the first month of 2023.

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The data comes as higher borrowing costs and recession fears took their toll on the UK property market. The fall in the London property market means prices were unchanged when compared to January 2022, suggesting it will soon be in negative territory year-on-year despite being up by 2.9% in December.

Overall, house prices across the UK stabilised in January, remaining virtually unchanged at £281,684.

What Halifax is predicting for 2023

Kim Kinnaird, Director, Halifax Mortgages, said: “The start of 2023 has brought some stability to UK house prices, with the average house price remaining largely unchanged in January at £281,684, a very small decrease on December. This followed a series of significant monthly falls at the end of last year (-1.3% in December and -2.4% in November).

“We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years. As we move through 2023, that trend is likely to continue as higher borrowing costs lead to reduced demand.

House prices have fallen - albeit from near record highs (image: Getty Images)House prices have fallen - albeit from near record highs (image: Getty Images)
House prices have fallen - albeit from near record highs (image: Getty Images)
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“For those looking to get on or up the housing ladder, confidence may improve beyond the near-term. Lower house prices and the potential for interest rates to peak below the level being anticipated last year should lead to an improvement in home buying affordability over time.”

For more information, visit the Halifax House Price Index.