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UK House Price Index – June 2023

Research and Insight June 2023
Top insights
Executive summary
House price inflation slows to +1.2% as quarterly growth rate turns positive following pick-up in sales activity over Spring
Modest quarterly price falls set to return in H2 as higher mortgage rates hit buying power by up to 20%
5% rates a tipping point for annual price falls and lower sales
Spike in proportion of sellers having to accept discounts to asking price of more than 5% to 42% – returning to 2018 levels
UK house prices still on track to fall by up to 5% over 2023
Further downside risk if we see an acceleration in supply of homes for sale that boosts choice and further room for negotiation.
+ 1.2 %

Annual UK house price inflation

42 %

Sellers accepting discounts of more than 5% off the asking price

- 19%

Hit to buying power from mortgage rates rising from 4% to 6%

“Falling mortgage rates over H1 2023 boosted sales and led to firmer prices. This is set to reverse in H2 as higher mortgage rates hit buying power at a time when sellers are having to accept larger discounts to asking prices."

Richard Donnell Executive Director - Research
Above average sales and supply but fewer buyers in market
Source: Zoopla Research
% change - 4 weeks to 23 April 2023 compared to the same period in 2019 and 2022. Resale market only