Impact of house prices falls in Yorkshire to be limited, conveyancing expert predicts

Local property expert and owner of X-Press Legal Services South & West Yorkshire Claire Ide said she believes a hardening market will keep the conveyancing sector busy as property owners react to the economic downturn.

But she added that property price falls won’t be as severe as some pundits have predicted.

“It’s going to be a very interesting 12 months for our sector,” commented Claire.

“A fall in house prices is inevitable after the highs of the past few years however, I don’t think we will see a drop much lower than 10 per cent.

"Some homeowners might take a ‘wait and see’ approach to the market, while others struggling with mortgages and rising bills may be forced to sell.

“Of course, a fall in the market isn’t bad news for everyone.

"Those who can afford to will take advantage of lower prices, and the continuation of Stamp Duty cuts should also contribute to a steady quantity of transactions.”

The average UK house price fell for the fourth month in a row in December, according to an index released earlier this month.

Property values decreased by 1.5 per cent in December, following a 2.4 per cent drop in November, a 0.4 per cent decrease in October and a 0.1 per cent dip in September, according to Halifax.

The annual rate of house price growth more than halved, to 2.0 per cent in December, from 4.6 per cent in November.

This marked the lowest annual growth rate recorded since October 2019, when a 1.1 per cent increase was recorded.

Across the UK, the average house price in December was £281,272. In Yorkshire and Humber it was £205,466 – 6.6 per cent higher than the same point the year before.

Kim Kinnaird, director of Halifax Mortgages, said earlier this month: “As we’ve seen over the past few months, uncertainties about the extent to which cost-of-living increases will impact household bills, alongside rising interest rates, is leading to an overall slowing of the market.

“The housing market was a mixed picture in 2022. We saw rapid house price growth during the first six months, followed by a plateau in the summer before prices began to fall from September, as the impact of cost-of-living pressures, coupled with a rising rates environment, began to take effect on household finances and demand.

“These trends need to be viewed in the context of historic prices. The cost of the average home remains high – greater than it was at the start of 2022 and over 11 per cent more than house prices at the beginning of 2021.

“The first half of last year was a very strong period for sellers, between January 2022 and August 2022, the average cost of a home rose by over £17,000 to £293,992, setting a new record high.

“As we enter 2023, the housing market will continue to be impacted by the wider economic environment and, as buyers and sellers remain cautious, we expect there will be a reduction in both supply and demand overall, with house prices forecast to fall around 8 per cent over the course of the year.

“A drop of 8 per cent would mean the cost of the average property returning to April 2021 prices, which still remains significantly above pre-pandemic levels.”