Property prices can normally be relied on to rise at a steady rate, but since the pandemic, there’s been a cycle of boom and bust which has made the situation unpredictable.
With the current cost of living crisis, and the inflation figure of 10.1% announced today (October 19th), the latest House Price Index from the Office of National Statistics UK HPI shows that the increase in property prices for England, Scotland, Wales and Northern Ireland, have slowed between July and October. The data, collected from HM Land Registry, shows that on average, house prices have risen 0.9% since July 2022. There has been an annual price rise of 13.6%, which makes the average property in the UK valued at £295,903.
England
In England, the August data shows on average, property prices have risen by 1% since July 2022. The annual price rise of 14.3% takes the average property value to £315,965.
The regional data for England indicates that:
- the East Midlands experienced the greatest monthly rise with an increase of 2.3%
- the West Midlands saw the lowest monthly price growth, with a movement of -0.2%
- the South West experienced the greatest annual price rise, up by 17%
- London saw the lowest annual price growth, with a rise of 8.3%
Price change by region for England
| Region | Average price August 2022 | Annual change % since August 2021 | Monthly change % since July 2022 |
|---|---|---|---|
| East Midlands | £255,114 | 16.9 | 2.3 |
| East of England | £364,885 | 14.3 | 1.2 |
| London | £552,755 | 8.3 | 0.9 |
| North East | £164,395 | 14.3 | 0.9 |
| North West | £219,025 | 15.3 | 0.4 |
| South East | £406,981 | 14.8 | 1.4 |
| South West | £335,927 | 17 | 1.3 |
| West Midlands | £255,202 | 13.9 | -0.2 |
| Yorkshire and the Humber | £212,313 | 13.9 | 0.8 |
Repossession sales by volume for England
The lowest number of repossession sales in May 2022 was in the South West.
The highest number of repossession sales in May 2022 was in the North East.
Repossession sales May 2022 East Midlands 7 East of England 4 London 6 North East 25 North West 14 South East 10 South West 3 West Midlands 6 Yorkshire and the Humber 20 England 95
Average price by property type for England
| Property type | August 2022 | August 2021 | Difference % |
|---|---|---|---|
| Detached | £497,992 | £429,637 | 15.9 |
| Semi-detached | £301,973 | £263,191 | 14.7 |
| Terraced | £258,301 | £226,049 | 14.3 |
| Flat/maisonette | £259,591 | £233,812 | 11 |
| All | £315,965 | £276,457 | 14.3 |
Funding and buyer status for England
| Transaction type | **Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
|---|---|---|---|
| Cash | £295,374 | 13.8 | 1.1 |
| Mortgage | £326,163 | 14.5 | 1 |
| First-time buyer | £262,022 | 14 | 0.8 |
| Former owner occupier | £362,680 | 14.6 | 1.2 |
Building status for England
| Building status | Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
|---|---|---|---|
| New build | £420,641 | 22.3 | 2.7 |
| Existing resold property | £297,193 | 5.9 | 1.2 |
London
London shows, on average, house prices have risen by 0.9% since July 2022. An annual price rise of 8.3% takes the average property value to £552,755.
Average price by property type for London
| Property type | August 2022 | August 2021 | Difference % |
|---|---|---|---|
| Detached | £1,121,142 | £1,036,859 | 8.1 |
| Semi-detached | £714,098 | £651,633 | 9.6 |
| Terraced | £604,387 | £553,544 | 9.2 |
| Flat/maisonette | £459,400 | £428,618 | 7.2 |
| All | £552,755 | £510,268 | 8.3 |
Funding and buyer status for London
| Transaction type | Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
|---|---|---|---|
| Cash | £569,354 | 6.3 | 0.7 |
| Mortgage | £546,765 | 8.8 | 0.9 |
| First-time buyer | £476,248 | 8.4 | 0.7 |
| Former owner occupier | £636,231 | 8.1 | 1 |
Building status for London
| Building status | Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
|---|---|---|---|
| New build | £593,168 | 17.2 | 2.3 |
| Existing resold property | £532,570 | 4.9 | 1.8 |
Wales
Wales shows, on average, property prices have risen by 0.2% since July 2022. An annual price rise of 14.6% takes the average property value to £220,059.
There were 5 repossession sales for Wales in August 2022.
Average price by property type for Wales
| Property type | August 2022 | August 2021 | Difference % |
|---|---|---|---|
| Detached | £339,517 | £293,535 | 15.7 |
| Semi-detached | £212,933 | £186,319 | 14.3 |
| Terraced | £171,347 | £149,275 | 14.8 |
| Flat/maisonette | £137,934 | £124,553 | 10.7 |
| All | £220,059 | £192,019 | 14.6 |
Funding and buyer status for Wales
| Transaction type | Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
|---|---|---|---|
| Cash | £213,344 | 14.4 | 0.7 |
| Mortgage | £224,008 | 14.7 | 0 |
| First-time buyer | £189,230 | 14.5 | 0 |
| Former owner occupier | £256,397 | 14.7 | 0.5 |
Building status for Wales
| Building status | Average price August 2022 | Annual price change % since August 2021 | Monthly price change % since July 2022 |
| New build | £318,924 | 26.2 | 2.9 |
|---|---|---|---|
| Existing resold property | £208,577 | 8.1 | 1.3 |
UK house prices
UK house prices increased by 13.6% in the year to August 2022, down from 16.0% in July 2022. On a non-seasonally adjusted basis, average house prices in the UK increased by 0.9% between July and August 2022, down from an increase of 3.0% during the same period a year earlier (July and August 2021).
The UK Property Transactions Statistics showed that in August 2022, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 104,980. This is 7.6% higher than a year ago (August 2021). Between July and August 2022, UK transactions increased by 1.1% on a seasonally adjusted basis.
House price growth was strongest in the South West where prices increased by 17.0% in the year to August 2022. The lowest annual growth was in London, where prices increased by 8.3% in the year to August 2022.
Market commentators are predicting an “uncomfortable landing” for the housing market after the latest official government data found UK house prices increased by 13.6% year-on-year in August.
Credit Suisse and Capital Economics have predicted peak-to-trough house price falls of up to 15%, with house-builders Barratt and Bellway already reporting a steep decline in reservations. Barratt said that recent sales rates were down 47% on the same period last year, while Bellway said that coparable numbers were down 35%. Both firms abandoned expectations of growing output in the current financial year.
The UK HPI is based on completed housing transactions, and typically, a house purchase can take 6 to 8 weeks to reach completion, so apparent property prices are always going to lag slightly behind the reality.
