By using this website, you agree to our use of cookies to enhance your experience.


Land Registry records first annual house price drop for a decade

The Land Registry has recorded the first annual drop in property values for a decade in its house price index.

Both the Halifax and Nationwide indices have shown annual declines in recent months and September figures from the Land Registry show a 0.1% drop.

This may be skewed by September 2022's mini-Budget but prices are also down 0.5% on a monthly basis.


It puts average house prices at £291,385, which is higher than the March trough but slightly behind the £291,716 of the previous peak in September 2022.

Commenting on the figures, Nathan Emerson, chief executive of agency trade body Propertymark, said: "Across the UK, we are starting to see certain geographical regions demonstrating a small uplift regarding house prices, based on month-by-month analysis. However, it remains very early days yet before we can confidently say we are witnessing sustained growth once again.

"Overall, we are continuing to see an uncertain housing market on the back of elevated inflation and interest rates. Currently many people are still approaching the market with caution, and this will likely remain the case until there is a higher level of consistency with personal finances. As inflation starts to come back towards more manageable levels, Propertymark remain optimistic we will start to see a smoother path ahead. 

“However, we currently have the situation of consumers being extremely mindful regarding affordability and such people will likely only commit to the housing market once they feel assured of a long-term stability - mainly in the form of lower interest rates."

Other agents appear more optimistic.

Verona Frankish, chief executive of Yopa, said: “We’ve already seen early signs that a freeze on interest rates has helped to stabilise the market, with both Nationwide and Halifax reporting monthly increases in October, as buyers start to return to the fold with a greater degree of confidence. 

While we’re yet to see any notable change with respect to actual sold prices, it’s important to remember that these figures are reported on a lag and It’s only a matter of time before this uplift in market activity starts to filter through to the prices being achieved by the nation’s sellers. 

What’s more, there are whisperings of yet another stamp duty incentive set to be unveiled in the Autumn Statement this month and we know the positive impact this can bring from past experiences.”

Director of Benham and Reeve, Marc von Grundherr added: “The nights may have drawn in but the future of the property market is currently looking far brighter than many would have anticipated at the start of the year. 

“Yes, sold prices are yet to show any significant movement in either direction and the cost of borrowing remains higher than the record lows home buyers had become accustomed to.

“However, the key is stability, and with interest rates frozen and inflation falling, 2024 should bring a far more settled time for buyers and sellers alike.”

  • icon

    We have to bear in mind that land registry figures are based on completions. On the basis that an average transaction takes 4-5 months from agreeing the sale to completion at present and that the latest figures from the LR are September, what they are actually showing is the state of the market in April/May. However, It is the only price index that takes into account every transaction in the UK including all lenders and cash buyers, which makes it the most accurate by far. Bad bits and good bits!


Please login to comment

MovePal MovePal MovePal
sign up