The Office for National Statistics’ UK House Price Index for July 2022 has shown average house prices have increased by £39,000 more than this time last year
ONS figures from the UK House Price Index for July 2022 have shown the highest annual inflation rate seen in the UK since May 2003.
The July 2022 House Price Index found that UK average house prices increased by 15.5% over the year to July 2022, up from 7.8% in June 2022.
This jump in annual inflation was mainly because of a base effect from the falls in prices seen this time last year, as a result of changes in the stamp duty holiday.
The average UK house price was £292,000 in July 2022, which is £39,000 higher than this time last year
Average UK house prices increased by £6,000 between June and July this year, compared with a fall of £13,000 between the same months last year.
On a non-seasonally adjusted basis, average house prices in the UK grew by 2.0% between June and July 2022, representing the ninth consecutive monthly increase. This compares with a decrease of 4.8% during the same period a year earlier (June and July 2021).
On a seasonally adjusted basis, average house prices in the UK increased by 1.2% between June and July 2022, following an increase of 0.9% in the previous month. Prices fell by 5.3% between June and July 2021.
House prices broken down by region
Despite having the lowest annual house price growth rate, London’s average house prices remain the most expensive of any region in the UK, with a record average price of £544,000 in July 2022.
By contrast, the South West was the region with the highest annual house price growth, with average prices increasing by 20.7% in the year to July 2022. This was an increase from the growth rate of 7.8%. This was up from a growth rate of 7.8% in June 2022.
The lowest annual house price growth was in London, where average prices increased by 9.2% over the year to July 2022, up from 6.3% in June 2022.
The North East continued to have the lowest average house price at £163,000, which is a record high for the region.
Questions remain amongst the industry about how prices will be impacted by rising interest rates, the cost of living crisis and the threat of a possible housing market crash.
