The ONS today released its latest House Price Index, covering August 2023.

This index offers a summary of house price changes across various regions of the country, painting a picture of the prevailing housing market conditions.

Key Highlights

The top findings give a general overview:

1. The annual inflation rate for UK house prices was 0.2% in August 2023, down from a 0.7% rise observed in July 2023.
2. The average house price across the UK was £291,000 in August 2023. This is not notably different from the value a year ago but £9,000 higher than the lowest recorded figure in March 2023.
3. Regionally, England saw no real change in annual average house prices (£310,000), Scotland saw a 1.1% growth (£194,000), while in Wales there was a marginal decline (0.1% to £217,000).
4. Northern Ireland saw the strongest annual growth of 2.7%, taking the average house price to £174,000 by Q2 2023 (April to June).
5. Among English regions, North East saw the most substantial annual percentage change (3.6% increase) while East of England recorded the lowest (1.6% decrease).

Assessing the UK House Prices Landscape

The data, compiled by HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland, tells you how the property market performed in August 2023. The annual inflation rate of UK house prices exhibited a slow growth rate since July 2022, when it was a staggering 13.8%. A key point to note is the overall UK property transactions, which stood at 87,010 (on a seasonally adjusted basis). This was a 16% drop from August 2022, but a 1% improvement from July 2023.

The month-on-month comparison of the average UK house price outlines subtle changes. August 2023’s data shows a slight increase of 0.2%. This comes after a 0.3% decline in July 2023. So, there seems to be a gradual but positive shift in the pricing trends.

Regional House Price Analysis: England, Scotland, and Wales

Now, let’s look at how house prices evolved in different countries within the UK:

1. In England, stakes remained stable at £310,000, not showing any substantial change compared to the previous year.
2. Scotland, on the other hand, displayed promising growth with a 1.1% increase year-on-year (YoY), lifting the average house price to £194,000. This is a significant increase, considering the low point of £181,000 in February 2023.
3. In Wales, a slight dip of 0.1% YoY was recorded, pulling the average house price down to £217,000. Interestingly, this is the first decline experienced since April 2020.

English Regions Showing Diverse Patterns

When taking a closer look at the regions within England, we can start to notice contrasting patterns. London, widely acclaimed for its high-priced properties, continued to uphold its reputation, reporting an average house price of £536,000 in August 2023. However, there was a noticeable reduction in prices, marking a negative 1.4% YoY change.

In stark contrast, the North East held the title for the least expensive region with an average house price of £165,000. It also emerged as the region with the largest YoY price growth in the country, with an impressive 3.6% increase. Meanwhile, East of England saw a downturn, with a 1.6% YoY decrease in house prices.