The average UK house price was £295,000 in November 2022, which is £28,000 higher than this time last year, according to the latest ONS UK House Price Index
The November 2022 ONS UK House Price Index has been released, showing that house prices across the UK have decreased in comparison to the previous month, but remain £28,000 higher than last year.
The average UK house price was £295,000 in November 2022, which is £28,000 higher than this time last year, but down slightly from the previous month’s record high of £296,000.
Remaining largely unchanged, on a seasonally adjusted basis, the average UK house price increased by 0.1% between October and November 2022, following an increase of 0.5% in the previous month.
On a non-seasonally adjusted basis, the average UK house price decreased by 0.3% between October and November 2022.
The average UK house price annual percentage change was 10.3% in the year to November 2022, down from 12.4% in the year to October 2022.
Regional breakdown showed consistent rises across all regions
Average house prices increased over the year to £315,000 (10.9%) in England, to £220,000 in Wales (10.7%), to £191,000 in Scotland (5.5%) and to £176,000 in Northern Ireland (10.7%).
House price annual growth was strongest in the North West where prices increased by 13.5% in the year to November 2022.
The lowest annual growth was in Scotland, where prices increased by 5.5% in the year to November 2022.
London was the English region with the lowest annual growth, where prices increased by 6.3% in the year to November 2022.
Industry voices wonder if prices will continue to rise
Nick Leeming, chairman of Jackson-Stops, comments: “With house prices continuing to rise on both a monthly and annual basis, the question on the market’s lips now is whether we’ve reached the peak of house prices or if there is still more space to climb.
“There was a sense that a quietened festive period would allow supply and demand levels to balance out, but the sheer level of competition that remains underpins the strength in the market to ensure a soft landing on predicted price falls.
“Although the market has not been immune from political and economic uncertainty, it will be more sharply felt by those at the start of their property journey or on a fixed rate deal coming to an end. Despite our challenging lending environment with interest rates now at 3.5%, it is important to remember that borrowing remains accessible and while current rates are not an indication of future ones, there are still opportunities to be had – mortgage rates have now fallen to their lowest for three months.
“The Government’s recent decision to remove the mortgage stress test from August 1st 2022 demonstrated a commitment to keeping the market moving. House prices are much steadier than six months ago, with previous wild spikes in values now cooling back down to the realms of normality.
“It will be homes that are optimistically priced to test the market that may fall victim to much lengthier transaction times, with an increased likelihood of down valuations and unprepared buyers.”
The ONS UK House Price Index is indicative of stagnant conditions for growth
Andy Sommerville, director at Search Acumen:
“As we shake off our January blues, it comes as no surprise to see that house price data this month indicates a flatline in growth reflective of current macro-economic conditions. As one of the coldest months of the year when people will be particularly concerned with rising energy prices, and with inflation still hitting families hard, we expect this tightening trajectory to continue.
“With house price values in a likely slow but steady decline as we settle into a recessionary period, this raises the likelihood of uncertain transactions with more down valuations, gazundering and buyers pulling out of deals altogether. The latest data from Land Registry shows that completion times are ranging from eight minutes to over eight months.
“This, combined with the upcoming strike by HMLR planned for February, means delays are not only prevalent but set to continue. We know over a third of property sales fell through last year, peaking at over 52% of all transactions in November. To avoid a house of cards in 2023, it is more important than ever that the industry engages with all digital tools at their disposal for a fast and efficient transaction.”
Others argue that the first monthly reduction in 13 months is merely seasonally influenced
CEO of Alliance Fund, Iain Crawford, commented:
“The current outlook for the housing market is far more positive than it was just a few short months ago and while we continue to tread with some degree of caution, the general consensus is that the year ahead will bring greater stability.
“With this in mind, the marginal monthly decline seen between October and November is likely to be short lived and is almost certainly being influenced by the seasonal slowdown approaching the festive season.”
Managing director of Barrows and Forrester, James Forrester, commented:
“The first monthly reduction in house prices in 13 months is sure to spur panic and predictions of a property market collapse, but to do so based on just one month is quite frankly ludicrous.
The reality is that the property market has well and truly weathered the storm caused by the incompetence of the UK government and remains in fine form despite a very marginal reduction in property values.
If we were going to see a notable dip, it would have materialised by now. This hasn’t been the case and while the heat of the pandemic market boom may have subsided, property prices remain considerably higher than they were this time last year.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“It’s been a swift start to the year and those of us with our ear to the ground will tell you that both buyer and seller enquiries are coming in thick and fast, particularly across the London market.
So while we may have seen a momentary period of respite towards the end of 2022, there is a renewed level of optimism enveloping the market so far this year.
We remain a nation driven by the aspiration of homeownership and it’s only a matter of time before this uplift in activity reverses the reduced rates of house price growth seen during the latter stages of last year.”
Managing director of House Buyer Bureau, Chris Hodgkinson, commented:
“The current cost of living crisis and the increased cost of borrowing, in particular, have somewhat dampened the enthusiasm of the nation’s homebuyers in recent months and we’re now starting to see this translate to a slight reduction in house prices.
“However, the property market landscape is a fragmented one and while many homeowners will have avoided a dip in the value of their property, there are plenty of areas where house prices have started to slide to a far greater extent.
“While it’s generally expected that the market will remain resolute this year, sellers in areas where the market is coming off the boil are well advised to sell quickly in order to achieve the best price for their home.”
