Six in 10 homeowners see value of home increase or stay the same in 2023

• Home values defy expectations in 2023, with six in 10 homeowners seeing the value of their home remain static or increasing

• Three million homeowners (10%) made a value gain of 5% or more over the year

• The average gain for homeowners who saw the value of their home increase over 2023 was £7,800 - down from £19,700 a year ago.

• Value gains are concentrated in more affordable areas - one in six homes in the North West increased in value by 5% or more

• Over four in 10 homes register a drop in value over 2023 - most of them in the south of England

12th February 2024, London: Despite a volatile housing market in 2023, home values defied expectations with six in 10 homeowners seeing the value of their home remain static or increase by at least 1%, latest analysis from property website Zoopla has revealed.

Of those who saw their property increase in value in 2023 enjoyed an average increase of £7,800 - or £21 per day. This is 60% lower than those who saw a gain in 2022.

Comparing home value estimates for every UK home from December 2022 to December 2023 Zoopla found that three million homeowners (10%) even made a gain of 5% or more over the course of the year.

Location impacting home values with increases most likely in the North

While the overall average UK house price moved lower over 2023, the nation’s 30 million homes are spread across thousands of housing markets, each with its own characteristics and drivers. This means that there is a clear north-south divide in the fortunes of homeowners in 2023 as lower prices cushioned the impact of higher mortgage rates in more affordable parts of the country. As a result, more homes registered increased values in northern Britain.

In 2023, the North West had the highest proportion of homes registering larger value increases of 5% or more - an average of £13,200 gained - as half a million homes (17% of houses) in the region recorded gains of over 5%. Property type has also had an impact on increased home values, with terraced homes in the region most likely to register over 5% value increases (19%).

The North West is followed by Scotland, where 16% ( just over 400,000) homes increased in value by 5% or more in 2023.

Home value decreases most likely in the South

Despite many homeowners in the UK experiencing value increases during 2023, over four in 10 (44%) of UK homes fell in value by at least 1%, with almost a third of homes falling in value by over 5% or more - a 2.5 x increase on the previous year.

This has been felt more in the South of England as homeowners in this region were most likely to see reductions in their home value estimates in 2023 with 18% of homeowners in the East of England and the South East registering home value decreases of 5% or more. The average loss for this group of homeowners in the East of England was £11,500, while those in the South East lost an average of £13,200.

As housing markets close to rural and coastal areas have cooled since the pandemic boom, it has contributed to falls in value in coastal areas in Kent and East Sussex with half of homeowners in the seaside towns of Dover and Hastings registering a 5% home value decline in 2023.

What to expect for house prices in 2024

Zoopla predicts modest house price falls of 2% in 2024 across the UK but exactly how this affects individual UK homeowners will depend on location.

High mortgage rates will continue to limit buying power and will be most felt in high-value regions in the South of England, contributing to further home value drops. This is particularly true for those who own a flat or detached home in the S

outh who should continue to price realistically in order to complete a sale. However, Zoopla expects those who saw home value growth in 2023 to see similar increases in 2024.

Commenting on the analysis, Izabella Lubowiecka, Senior Property Researcher at Zoopla says: “While national house prices indices pointed to modest house price falls over 2023, our property by property level tracking of home values shows that most homes saw their value unchanged or slightly higher over the year. Value reductions were focused in southern England while modest gains were recorded in lower priced, more affordable housing markets."

Areas with highest concentration of homes increasing in value by 5% or more

Regions with the highest concentration of homes with value loss of 5% or more

- Ends -

For further information, please contact PR Team on pr@zoopla.co.uk or +44 (0)20 3873 8770.

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