UK House Prices: The Latest News and Figures in 2022

Contents

The Latest UK House Price News 

UK house prices have been changing drastically over the past year.

Stay up to date on the UK property market with our quick facts on UK house price growth and information on the latest housing market performance.

The Latest UK House Price Figures From June – August 2022: What Are House Prices in the UK Doing Right Now? 

From June to August, the UK has seen the rise in house prices slow to a crawl, but this was expected by financial analysts.

In June 2022, the UK House Price Index recorded that the annual price change for a property was 7.8%, which is slower growth than in Spring 2022.

July saw Rightmove report that asking prices rose by 0.4% compared to June, but noted that they were seeing the record level of buyers drop ever so slightly ‘from a boil to a simmer’.

Rightmove has reported that in August, house prices fell for the first time in 2022. The average price of a property in the UK fell by 1.3% to £365,173, which translates to a drop of over £5000.

However, this is no cause for alarm. The housing market has seen a drop in August for the past 10 years, as potential buyers are preoccupied with the summer holidays.

It has also been an intensely busy two years for the housing market, so this is a sign of prices returning to normal levels.

UK House Prices in Spring 2022 – Did The Growth Continue?

From March to May, UK house prices continued to show strong growth that continued from the previous season, rising at faster rates than previously seen in winter.

March saw house prices rise by a smaller amount than the last few months, only increasing by 0.3% according to the UK House Price Index. However, as the year progressed, the rate at which house prices rose increased.

In April, the UK saw house prices rise to £281,161, which was a rise of 1.1% from March. Further growth was seen in May, when prices rose another 1.2% to have an annual increase of 12.8% compared to May 2021.

Rightmove’s data shows asking prices hit over £350,000 for the first time ever in March, which was the biggest monthly increase for that time of year in 18 years.

Homeowners putting their property on the market were twice as likely to find a buyer in the first week compared to the same time period in 2019.

This shows that the strong growth the housing market has seen has continued into 2022, and is here to stay for the foreseeable future.

UK House Prices in Winter 2021/22 – How Did The Market Change? 

In September 2021, Halifax unveiled its statistics on the UK housing market.

Their figures revealed that the new average UK house price stood at £262,954 as of August 2021 – the highest ever on record.

This record-breaking figure was £23,600 higher than the average UK property price back in June 2020.

The new average house price is also 1.2% higher than it was in the previous month.

Updated statistics from the UK house price index have revealed that UK house prices decreased by £10,000 on average between June and July.

This recent Halifax data, however, shows that prices are on a sharp rise. Those who want to invest in property before prices increase further are urged to act fast to secure the best deals now.

In November 2021, the UK house price figures revealed that the average property price in the UK (as of August) stood at £264,244, which was up 2.9% since July.

This new figure is higher than Halifax’s predicted £262,954, which shows that property prices are increasing further.

In December 2021, house prices continued to rise, with the average property price increasing by 0.8% to £274,712. This rise continued into January 2022, where house prices rose by a further 0.4% to have an annual increase of 9.6% compared to January 2021.

This showed that house prices continued to rise at fast rates, increasing further at the turn of the year.

UK House Prices in Summer 2021 – How Did the Market Perform? 

In the summer of 2021, house prices in the UK experienced some record-breaking highs. 

In June, reports from the UK Nationwide house price index showed a 13% rise in national house prices compared to June 2020. 

This was the biggest jump in property prices since November 2004, highlighting the strength of the 2021 housing market.  

In July, UK house prices were again higher than in the previous year, with a 7.9% rise.  

What Happened to UK House Prices in Spring 2021 

In the Spring of 2021, it was revealed that average UK house prices in March had risen to their highest level since before the financial crash in 2007, with an annual increase of 10.2% (now 9.2% according to updated house price index figures).  

By April 2021, the average UK property price was 9.2% higher than in the previous year, and by May, prices were 0.9% higher month-on-month. 

Throughout Spring, urgency clouded the property market due to the upcoming end to the full stamp duty holiday tax break at the end of June.  

This led many buyers to rush to purchase second properties while they could still take advantage of tax savings.  

House Prices in the UK in Winter 2020/21  

In Winter 2020/21, housing market statistics from the UK house price index revealed a 0.8% rise in average property prices between November 2020 and December 2020. 

By January 2021, prices had grown by 0.9% month-on-month, with a 7.3% annual increase compared to January 2020.  

Pre-pandemic average house prices in the UK stood at around £231,940, and by January 2021, they stood at £249,009. 

By February, prices had increased by 8.6%.  

Compared to last year, it became evident that the accelerated growth seen in 2020 was not slowing down any time soon, and the UK housing market was in for a record-breaking year.  

Past UK House Price Trends 

UK house price growth may have been prevalent throughout 2021, but what about past UK house price trends?  

Let’s look at how the UK property market has performed and how average house prices have changed over the last several years.  

How Much Have UK House Prices Increased Since the Beginning of the Pandemic in March 2020?

In March 2020, house prices in the UK were performing at a typical level. In March 2020, the average property price stood at £232,684.  

In the month following the announcement of a worldwide pandemic and the first UK lockdown, property prices experienced a -1% drop, with a new average house price of £230,318. 

Many were fearful that this price drop meant that the housing market was set to crash over the coming months.  

This was an anxious time for many who were left questioning – is now a good time to invest? 

However, for property investors who trusted that the market would pick back up again, this period presented a great opportunity to invest in UK property while prices were more affordable.  

And pick back up again the market did. By June 2020, property prices were already 0.8% higher than they were in March.  

Then, following the announcement of a stamp duty holiday which allowed homebuyers and investors to save on taxes for their property purchase, property prices rose to record levels. 

By September 2021, the average house price hit £241,684.  

This revealed a 3.4% annual house price growth and showed that the property market in the UK was resilient despite the pandemic.  

As a whole, from March 2020 to September 2021, house prices have increased by 13%.  

How Much Have UK House Prices Changed Over the Last 5-10 Years? 

In the UK, house prices over the last five years and 10 years have seen significant growth. 

When analysing data from the Land Registry UK House Price Index, it’s clear that the average UK house price has seen massive growth over the last 10 years. 

In January 2011, property prices in the UK stood at £167,300 on average, compared to average property prices in the UK of £249,009 by January 2021. 

This means that over 10 years, UK house prices have increased by 48.84% on average, which is a considerable rate of growth. 

When you look at house prices over the last five years using the same data, UK house price growth experienced an increase of 21.19% between January 2016 and January 2021. 

How Did the Brexit Vote in 2016 Affect UK House Prices? 

Over the last five years, Brexit has had one of the biggest influences on the UK property market and UK house prices. 

In the lead-up to the 2016 EU referendum, many people, particularly investors, feared Brexit’s effect on property prices in the UK. 

While property prices did fall due to this uncertainty, the market wasn’t affected as dramatically as many expected. 

According to Halifax, UK house prices fell by 1% in July 2016 – a month after the EU referendum vote. 

By October of that same year, however, property prices in the UK had increased by £2,623. 

Between October 2016 to October 2017, there was a reported UK house price growth of 4.5%. 

Now, the UK has officially left the EU, and house prices have remained relatively consistent. 

House price growth throughout 2021 has been on the rise, and UK house price forecast predictions suggest nothing but further growth over the upcoming years.  

UK House Prices by Area 

Record highs have been seen in the UK lately, but how does the overall UK average compare to house price growth within different regions, cities, and towns? 

In this section, we’ll take a look at: 

• Average house prices in the UK by postcode. 
• Analyse North West house prices and discover why the region is one of the best in the country for its property market. 
• Discuss where you can find the lowest and most expensive house prices in the UK. 

Where Are UK Property Prices Rising Fastest? 

Property market data reveals that the North West region is the fastest-growing in 2021 when it comes to house prices. 

Looking at house prices across the different UK regions between June 2020 and June 2021, let’s compare the average house price growth in the North West to other areas.  

Data from the UK house price index shows that between June 2020 and June 2021, average house prices in the North West increased by 18.8%. 

As the graph shows, North West house prices grew faster than any other region between the same period.  

Of all the UK areas, London’s annual growth was the least impressive with a rise of just 5.1%.  

Wales followed closely behind North West house prices with an average property price growth of 17%, next to Yorkshire and the Humber and the North East, which boasted growth of over 15%.  

Where Are the Cheapest House Prices in the UK?  

To learn where to find the cheapest house prices in the UK, let’s analyse some house prices in the UK by postcode. 

According to Property Data, the cheapest house price can be found in the TS1 postcode in Middlesbrough. Here, the average property price in 2021 is just £54,978. 

Next to this, Bradford’s BD1 postcode offers average prices of £58,673, while the SR1 postcode in Sunderland has prices of £65,478. 

Liverpool, one of the best places to invest in property in the UK due to low property prices and high rental yields, offers average prices of only £91,793 in the L20 postcode and £97,744 in the L5 area. 

Which Area Has the Most Expensive House Prices in the UK? 

In recent research from Halifax, the most expensive city to buy a home in 2021 was revealed as Winchester in the South East. 

Here, average property prices were higher than most people could afford based on national average earnings.  

According to Halifax in an August report, the average house price stood at £630,432, while average earnings are £45,059. 

As expected, London property also made the top 10 list.  

The most pricey postcodes to buy property in the capital include SW7, which spans the Knightsbridge and Kensington areas, and SW10, which is home to West Brompton. 

In these London postcodes, buyers will struggle to find a one-bedroom flat for less than £1 million.  

Current asking prices for SW7, according to Zoopla, stand at a whopping £1,312,899 for this property type.  

UK House Price Forecast Predictions – What Will Happen to House Prices UK? 

So, will house prices rise over the coming years, or should we expect some record lows after a year of enormous growth? 

Thankfully for many, house prices in the UK are set to rise over the coming years, despite cautious attitudes towards the property market following the end of the stamp duty holiday. 

According to the latest Savills predictions, the UK will see average property price growth of 21.5% by 2025. 

While this is an attractive figure, house price increases by area suggest that certain regions will outperform the national average when it comes to regional house prices. 

The North West, in particular, has seen some of the strongest property price growth when analysing UK house price trends. 

The latest property price news for the UK and North West housing news suggests this growth is set to continue. 

By 2025, Savills predicts that the North West region will see house price growth of 28%. 

Yorkshire and the Humber also expect house price growth of 28%, while the next best growth prediction is for Wales with a 26.8% expected increase.  

The lowest-performing region is London, with a 12.4% predicted capital growth rate. 

With the UK house price forecast in mind, looking for opportunities up North is essential to maximise capital growth potential over the coming years. 

When Will House Prices Drop in the UK? 

For those feeling cautious about the market’s future, the question still remains – will house prices drop in 2021 UK? When are we expected to see a more affordable version of the current house prices in the UK? 

Savills predictions state that in 2021, UK property prices should rise by an average of 9%.  

As of September 2021, it seems that UK house prices are on track to meet this growth level.  

With average house prices of £249,009 in January according to the UK House Price Index and an average property price of £262,954 as of August according to Halifax data, it appears UK property prices have grown by 5.6% in the last eight months alone.  

While house prices in the UK may have dropped between June and July due to the end of the stamp duty tax break, the new average price of £262,954 (up from July’s £255,535) shows that this drop was only temporary. 

If you’re considering buying UK property before prices rise even further, the time to do so is now.  

How Will Brexit Affect House Prices in the UK?

Judging by how the market recovered following the 2016 EU Referendum vote, experts are confident that the UK property market will remain resilient as Brexit unfolds. 

UK house prices have seen steady growth throughout the last five years, with an 11% property price rise since the beginning of 2016.  

For a more thorough investigation into Brexit’s effect on house prices in the UK, read our guide to property prices after Brexit.  

How Important Are Capital Growth Predictions for UK Investors? 

Understanding and researching UK house prices and property market predictions as a buy to let property investor is integral to any investment journey. 

This is because you get no indication of possible capital growth returns without knowing about the past, current, and future state of the area you’re looking to invest in. 

Capital growth is one of the most lucrative elements of a buy to let investment. 

If your property grows in value over time, you will have built up two types of returns – rental returns and capital gain. 

By the time you come to sell your property, its value could have increased in line with local property market trends. 

This means you will benefit from a large lump sum of money on top of the money you’ve earned through rental income. 

By identifying the best house price increases by area, you can narrow down the locations with the best investment opportunities before making your purchase. 

You can then avoid any cities or regions with slow expected growth.