The ONS UK House Price index August 2022 has shown an increase in house prices, although annual growth was slowed compared to August 2021’s stamp holiday changes
The UK House Price index for August 2022 from the Office of National Statistics has found that the average house price increased by 13.6% over the year to August, down from 16% in July 2022.
The average UK house price has risen by £36,000 compared to last year, reaching £296,000
The regional breakdown of average house prices shows increases across the board.
England’s prices rose by 14.3% to £316,000, and Welsh house prices rose by 14.6% to £220,000.
Scotland saw an increase of 9.7% to £195,000 and to £169,000 in Northern Ireland(9.6%).
Despite house prices rising between July and August in 2022, annual growth has decelerated. This is due to the stamp duty holiday’s impact on house prices in August of last year, causing them to rise sharply and creating a more severe comparison.
Industry voices are concerned about the longer term impact of rising mortgage rates
Phil Tennant, COO of iBuyer Upstix, said: “While the full effects of recent macroeconomic developments haven’t yet been recorded in the data, the prospect of turbulence around the corner won’t be welcomed by those who were considering a purchase or sale in the near future. However, there are still many people with comparatively low-rate mortgages still in the market who are looking to complete. It’s this group who are under threat of having their dreams dashed when property chains collapse.
“The volume of broken chains, which were already a problem in the UK, is only going to get worse if people can no longer afford to sell up and move up the housing ladder thanks to the rising costs of a mortgage, or in the case of many young people, be able to even get their foot on the first rung.
“Some chains break for unavoidable reasons of course. Buying or selling a home is a big decision, and many will have second thoughts. But it’s clear that there are deep-rooted problems in our property market that need to be addressed swiftly, especially in light of the current market turmoil. At the very least, there should be more options available to those moving home beyond the traditional mode.”
The UK House Price index August 2022 suggests that more people may find it impossible to get on the property ladder
Gary Wright, co-CEO of payment technology firm flatfair, said: “We’re not yet seeing the full impact of increasing mortgage rates reflected in the data. And while it may be tempting for would-be first time buyers to wish for a more substantial dip in prices, those currently renting may well see the increased cost of their landlord’s buy-to-let mortgage passed on to them.
“High rates also make getting on the first rung of the ladder even more difficult. While we’ve seen lots of talk in Westminster about making this first step easier, we’ve seen no one face the reality that renting is an inevitability for many people for the foreseeable future. Some policy focus on Generation Rent would be welcome.”
