Figures from the latest UK House Price Index have shown that the February 2023 average house price has increased by 5.5% in February, down from 6.5% in January 2023
The average UK house price was £288,000 in February 2023, which is £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
The February 2023 average house price was £288,000 in February 2023, which is £16,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.
However, this is the third consecutive month that house prices have fallen on both a seasonally adjusted and non-seasonally adjusted basis.
The West Midlands saw the greatest annual percentage change
Across the UK, average house prices increased over 12 months to £308,000 (6.0%) in England, £215,000 in Wales (6.4%), £180,000 in Scotland (1.0%) and £175,000 in Northern Ireland (10.2%).
In Scotland, annual house price inflation has been slowing down since the peak of 13.8% in the 12 months to April 2022, slowing to 1.0% in the 12 months to February 2023.
Out of all of the regions in England, the West Midlands saw the highest annual percentage change at 8.6%, whilst London saw the lowest at 2.9%.
The average house price in Northern Ireland increased by 10.2% over the year to Quarter 4 (Oct to Dec) 2022. Northern Ireland remains the cheapest country in the UK in which to purchase a property, with the average house price at £175,000.
Volatile prices have affected annual rates of change
House prices were turbulent due to price volatility in 2021 which affected annual rates of change. The annual percentage change was particularly high in October 2021, due to a sharp fall in UK average house prices following changes to Stamp Duty Land Tax.
Today’s figures mark a more stable period for house price values
Nick Leeming, chairman of Jackson-Stops, commented: “The property market has turned into a marathon from a sprint. While there is still a long way to go, the market has cleared the first jump relatively unscathed. Today’s figures show a soft repricing, which marks a more stable period for house price values following the supersonic heights reached this time last year.
“Even in the last two months, the economic picture is becoming much more stable. Mortgage deals are also returning to the market after a short hiatus in the immediate aftermath of Trussenomics.
“Market conditions and an under-reliance on outside funding has left cash buyers in a fortunate position, able to push ahead with quick completions and benefit from the increasing number of properties entering the market.
“Across the Jackson-Stops national network, we are seeing strong demand from buyers in commuter markets such as Midhurst, Tunbridge Wells, Reigate, and Chelmsford, with prospective buyers outweighing new instructions by at least 40%.
“With rents soaring ever higher, getting on the property ladder remains a priority for first-time buyers, keeping all tiers of the market moving where supply is strong.
“Those that have recently sold their homes and have been able to capitalise on the exponential rise in property values may now find themselves in a position to buy their next home mortgage free, and not having to compromise on size or specification. Boomers will be the driving momentum in the housing market for the remainder of 2023.”
