House prices predicted to fall until 2025

Based on data from Lloyds’ quarter three results for 2023, the bank’s figures suggest prices in the market will fall by 4.7% by the end of this year – before dropping by a further 2.4% by the end of 2024. House prices are then forecast to grow by 2.3% in 2025.  

These drops are consistent with the rate rises from the Bank of England, leading to higher borrowing rates – which many have blamed for the slowdown in the housing market.  

It’s also consistent with the findings from Lloyds-owned Halifax’s latest House Price Index – which showed average house prices fell by 0.4% September. And, while this is a small fall than the 1.8% drop seen in August, it’s the sixth month in a row that house prices have gone down. 

Meanwhile, on an annual basis, prices are down 4.7% - largely unchanged from 4.5% in August. However, they do remain £39,400 higher than in March 2020 – such was the extraordinary growth seen during the pandemic.  
Overall, a typical house now costs just over £278,000 – a decline of around £1,200 since last month – with the south of England continuing to see the most downward pressure on property prices.