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ONS – House Prices Rose by 1.7% in June

The Office for National Statistics (ONS) released its latest report on UK house prices, for the month of June 2023.

Main Points

  1. The average UK house price rose by 1.7% from June 2022 to June 2023, a slight drop from the 1.8% increase seen the previous month.
  2. As of June 2023, the average UK house costs £288,000. That’s £5,000 more than last year but £5,000 less than the highest recorded price in November 2022.
  3. Regional breakdown:
    • England: £306,000 (Up 1.9%)
    • Wales: £213,000 (Up 0.6%)
    • Northern Ireland: £174,000 (Up 2.7%)
    • Scotland: £189,000 (No change)
  4. Of all English regions, the North East saw the most significant growth (4.7%). Meanwhile, London’s prices actually dropped a tad by 0.6%.

On Twitter, Aimee North, Head of Housing Market Indices at the ONS, said, “Annual house price inflation, measured using final transaction prices slowed again in June, but the fall was gentler than we have seen in previous months.”

Trends to Note:

  1. Last year, around July 2022, house prices were increasing rapidly, with a whopping 14% surge. However, the rise has since cooled off.
  2. The number of houses being bought and sold in June 2023 was 15% less than the previous year but 6% more than the previous month.
  3. Effects of COVID-19: The pandemic temporarily slowed down house transactions, but things seem to be recovering.
  4. There was a lot of price fluctuations in 2021 and 2022, mainly due to changes in Stamp Duty Land Tax.

English Regional Insights:

  1. North East: Despite having the most significant yearly price growth, it still boasts the lowest average house price at £161,000.
  2. London: Holds the priciest tag with an average home costing £528,000. However, house prices here have decreased a bit over the year, a rare occurrence, with the last drop being back in November 2019.

Technical Bits:

  1. House Price Index (HPI): It’s a tool that shows how house prices change over time. If the HPI says 110, it means there’s been a 10% increase in house prices from the base period (usually set at an HPI of 100).
  2. House Price Inflation: This term describes how fast house prices are increasing or decreasing.
  3. Seasonally Adjusted vs. Non-Seasonally Adjusted: Some figures are adjusted to account for recurring patterns (like more people buying homes in summer). Those that aren’t adjusted are called ‘non-seasonally adjusted’.
  4. Always remember, the initial reports (like this one) are subject to change. As more data gets processed, the numbers can be revised.

What’s Behind the Data?:

  1. The UK House Price Index is compiled by several big bodies, including HM Land Registry and the Office for National Statistics.
  2. Recent changes in how they process transactions, especially new builds, might cause some bigger than usual adjustments to these numbers in the future.
  3. These figures are based on actual sales, not asking or approved prices, which is why there’s sometimes a delay in reporting.

Summary

In a nutshell, the UK housing market is steadily growing, with some regions experiencing faster growth than others. If you’re considering an investment, keep these figures and trends in mind, and always stay updated on the latest data!

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