Our monthly Property Surveying summary of property market news, survey data, statistics, trends and information. (All figures below are the most recently available data.)
Data source: Land Registry
UK average house price = £292,118, 2.0% change in the month, 15.5% up in the year. Monthly index (where January 2015 = 100) 153.2
House prices in the South West of England increased 20.7% over the last twelve months, the highest growth in the regions. London’s house price growth was the lowest, at 9.2%.
Buyer enquiries are in decline, and there is a modest increase in the number of properties available to buy. Average 12-month mortgage approval numbers are higher than the previous month, but lower than before the pandemic.
UK average house price = £294,260, 0.4% in the month, 2.6% up in the quarter, 11.5% in the year. Monthly index (where January 1992 = 100) 507.4
The cost of living is expected to put pressure on households that is likely to constrain the affordability of homes by buyers. Government intervention may help to offset some of the impacts but borrowing costs are likely to rise and the interest rate is expected to increase. This will result in a ‘more challenging period’ for house prices.
National average house asking price = £367,760 0.7% in the month and 8.7% in the year.
Middle to high-end houses are driving price rises, with a new high average price for three bedroom detached and non-detached four bedroom homes that are typical of second step house purchases (£340,513).
This month’s mini-budget reduction in Stamp Duty Land Tax, has resulted in 66% of homes now exempt from stamp duty for first time buyers, and 33% exempt for all buyers.
Despite this, first time buyers face increasing financial pressures and the average first time mortgage payment is £1,057 (or 40% gross salary for the average person). A further increase in interest will increase this to £1,114.
UK average house price = £273,751, 0.8% change in the month and 10.0% increase in the year
The average house price has risen by nearly £50,000 in just the last two years, yet prices have continued to rise. There are signs that increasing are slowing down, but this has been modest and the continued shortage of available housing stock has meant price growth price has been firm.
The greatest impact of the energy price cap, which increased by 80% recently, will be for the least energy efficient properties. The typical household will pay £3,545 for energy costs, but larger and less energy efficient homes will pay much more.
Nationwide estimates that, at the April 2022 price cap level, homes rated A-C will pay £1,700 a year, and those rated F-G will pay £3,900 per year.
Average England and Wales house price = £371,208, 0.7% change in the month, 12.2% in the year.
The housing market remains resilient to financial pressures, largely due to lack of supply and continued demand. Completion times are taking longer, often between four and five months.
Cost of living help from the government may have a positive impact on affordability but this remains to be seen.
REGIONAL HOUSE PRICES
(all percentages are positive unless indicated otherwise)
UK HPI Regional figures
| July 2022 | Average Price | % Monthly change | % Annual change |
|---|---|---|---|
| England | £311,583 | 2.2% | 16.4% |
| Northern Ireland (Quarter 2 – 2022) | £169,063 | 3.2% | 9.6% |
| Scotland | £192,966 | 0.6% | 9.9% |
| Wales | £219,951 | 2.8% | 17.6% |
| East Midlands | £247,740 | 0.6% | 16.8% |
| East of England | £358,413 | 1.2% | 16.0% |
| London | £543,517 | 1.1% | 9.2% |
| North East | £163,237 | 3.7% | 15.5% |
| North West | £217,077 | 2.5% | 18.1% |
| South East | £398,781 | 2.1% | 15.8% |
| South West | £330,414 | 2.7% | 20.7% |
| West Midlands Region | £255,876 | 3.8% | 18.0% |
| Yorkshire and The Humber | £211,960 | 3.1% | 17.7% |
UK HPI Average monthly price by property type
| Property type | July 2022 | July 2021 | Difference |
| Detached | £457,552 | £390,180 | 17.3% |
| Semi-detached | £283,077 | £242,338 | 16.8% |
| Terraced | £239,906 | £205,875 | 16.5% |
| Flat or maisonette | £234,000 | £214,175 | 9.3% |
| All | £292,118 | £252,961 | 15.5% |
Rightmove regional figures
| September 2022 | Average price GBP | Monthly change | Annual change |
| London | £682,499 | 2.1% | 6.9% |
| South East | £490,003 | 1.3% | 8.0% |
| South West | £393,154 | 1.1% | 11.3% |
| East of England | £425,705 | 0.2% | 7.5% |
| West Midlands | £287,703 | -0.4% | 10.4% |
| East Midlands | £288,058 | -0.1% | 8.9% |
| North West | £253,135 | 0.7% | 11.3% |
| Wales | £259,652 | -0.6% | 11.7% |
| Yorkshire & Humberside | £242,100 | 0.3% | 10.5% |
| North East | £183,441 | 1.1% | 10.8% |
LSL Acadata Regional Data
| July 2022 | Average House Price £ GBP | Monthly % change | Annual % Change Greater |
| Greater London | £674,755 | 0.7% | 2.7% |
| South East | £471,518 | 0.3% | 8.7% |
| South West | £376,741 | 0.7% | 15.2% |
| East of England | £408,830 | 0.7% | 2.7% |
| West Midlands | £287,542 | 1.2% | 12.9% |
| East Midlands | £276,118 | 0.5% | 13.1% |
| North West | £251,168 | 1.6% | 12.5% |
| Wales | £244,506 | 0.7% | 12.0% |
| Yorkshire & Humber | £239,322 | 0.8% | 11.0% |
| North East | £197,273 | 1.3% | 10.5% |
Focus on London
Best and Worst (-) annual performers according to:
| Rightmove September 2022 |
Average Price (£) GBP | Monthly change | Annual change |
| Havering | £483,814 | -0.6% | 10.4% |
| Merton | £739,582 | 1.2% | 10.4% |
| Southwark | £652,256 | 0.4% | 3.3% |
| Richmond upon Thames | £909,579 | -2.8% | 2.7% |
| LCL Acadata July 2022 |
Average Price (£) GBP | Monthly change | Annual change |
| Havering | £479,786 | 0.9% | 15.0% |
| Barking and Dagenham | £366,392 | 0.7% | 14.8% |
| Tower Hamlets | £524,176 | 0.4% | -15.3% |
| City of Westminster | £1,320,497 | 2.8% | -17.1% |
RICS Survey Overview
The RICS Residential Market Survey for August 2022 reported falls in new buyer enquiries, house sales and new instructions. Despite this, house prices are still increasing, although the pace of growth is easing in all regions.
The economy is blamed by most respondents, in particular the cost of living and higher borrowing costs. Demand is reduced in all areas but London appeared more resilient to this trend over the last month.
The average estate agent has just 34 homes on its books, an all time low that is likely to continue in the near future.
Tenant demand has increased at the same time as falling supply of rental property. The excess in demand is expected to result in rent increases of around 4% over the next year.
Rightmove.co.uk is the UKs leading property website, displaying details of homes for sale or rent to the largest online audience. It is consistently ranked the number one property website in the UK (source: Experian Hitwise). It has around 90% of all properties for sale and at any time displays a stock of over one million properties to buy or rent, worth around £270 billion. The Rightmove.co.uk site attracts over 130 million visits from home movers each month with time on site averaging over one billion minutes per month (Rightmove data, 2017).
LSL Acad E&W HPI is derived from Land Registry (LR) house price data, seasonally and mix adjusted by property type. © Crown copyright material reproduced with the permission of Land Registry. The prices are smoothed to show underlying trends. LSL Acad E&W HPI includes cash purchase prices and is the only index based upon the complete, factual house price data for England & Wales, as opposed to a sample.
UK HPI: Monthly house price inflation, calculated using data from Land Registry, Registers of Scotland and Land and Property Services Northern Ireland. This replaces the previous House Price Indices separately published by Office of National Statistics and Land Registry.
All figures within this article are correct at the time of going to press, and are reproduced in good faith. No responsibility will be taken for any decisions taken based on the information contained herein. Always seek professional advice.
The Monthly Market Fact File is updated monthly on the day of publication.
SH/LCB