The ONS has released their latest overview of UK house prices, covering the year to July 2023.

Overview

• Average UK House Prices: They have increased by 0.6% over the last 12 months up to July 2023. This is a decrease from the 1.9% increase observed in June 2023.
• Current Average House Price: As of July 2023, the average UK house is valued at £290,000. This figure is £2,000 higher than the previous year but £2,000 less than the peak observed in November 2022.

Drilling Down: House Prices by Country

England

The average house price here increased by 0.6% over the last year, reaching £309,000 in July 2023.

Scotland

Scotland witnessed a modest rise of 0.1% over the year, bringing the average house price to £192,000 by July 2023.

Wales

In contrast, Wales experienced a slight decrease in house prices by 0.1%, averaging at £216,000 in July 2023.

Northern Ireland

Northern Ireland stands out with a 2.7% increase in the average house price to £174,000 from April to June 2023. It remains the most affordable UK region to buy property.

Regional Analysis: England’s Housing Market

London

Even with a dip in its annual inflation rate to negative 0.8%, London retains its crown as the most expensive region in the UK with an average house price of £534,000 as of July 2023.

North East

This region has witnessed the highest annual price increase among all English regions — a rise of 2.7%, with an average house price of £163,000 in July 2023.

South West

On the other end of the spectrum, the South West experienced the lowest annual house price growth. Prices decreased by 1.0% over the past year. As of July 2023, the average house price stands at a value which is 0.2% lower than its price in June 2023.

Additional Insights

• The overall number of residential transactions in July 2023 was 86,510, which is a 16% decrease from July 2022 but a slight 1% uptick from June 2023.
• The COVID-19 pandemic had undeniably affected the housing transaction supply for a certain period.

Decoding the Terminology

For those new to property investment or the housing market scene, here are a few terms explained:

• House Price Index (HPI): Represents the percentage change in residential housing prices compared to a set time period (like the past year).
• House Price Inflation: This refers to the rate at which residential property prices increase or decrease in the UK.
• Non-seasonally Adjusted: A series that includes effects of different seasons or specific calendar events.
• Seasonally Adjusted: A series that has been modified to remove the effects of recurring seasonal events.

Wrapping Up

The housing market, with its constant ebbs and flows, is influenced by myriad factors — be it governmental policies, economic shifts, or global events like the COVID-19 pandemic. For potential investors or those interested in the property landscape, keeping a finger on the pulse of such updates can offer invaluable insights. This 2023 snapshot sheds light on some of these crucial trends. Whether you’re thinking of buying, selling, or just staying informed, it’s always beneficial to stay ahead of the curve.