UK annual house price growth slows to 6.3%

Annual house price growth slowed 6.3% in the 12 months to January 2023, down from 9.3% in December 2022, the Office for National Statistics (ONS) said.

The average UK house price was £290,000 in January 2023, which is £17,000 higher than 12 months ago. Average house prices increased over the 12 months to £310,000 (6.9%) in England, £217,000 in Wales (5.8%), £185,000 in Scotland (1.0%) and £175,000 in Northern Ireland (10.2%).

Annual percentage changes in house prices were volatile in 2021 and 2022 because of price volatility in 2021 affecting annual rates of change. For example, the October 2022 annual percentage change was high, partly caused by a sharp fall in UK average house prices in October 2021, following changes to Stamp Duty Land Tax.

Average UK house price annual percentage change was 6.3% in the 12 months to January 2023. Above: Annual house price rates of change for all dwellings, UK, January 2006 to January 2023 Source: UK House Price Index from the HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland, Office for National Statistics

The average UK house price rose 6.3% in the 12 months to January 2023, compared with a 9.3% rise in the 12 months to December 2022 and the annual inflation recent peak of 14.1% in July 2022. The annual percentage change slowed this month because average UK house prices fell in January 2023, but rose in the same period a year ago. These are preliminary, non-seasonally adjusted estimates and are subject to revision.

The provisional seasonally adjusted estimate of UK residential transactions in January 2023 was 96,650, as shown in HM Revenue and Customs' (HMRC's) Monthly property transactions statistics. This is 10.6% lower than January 2022 and 2.6% lower than December 2022.

The average UK house price was £290,000 in January 2023. Above: Average house price, UK, January 2005 to January 2023. Source: UK House Price Index from the HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland, Office for National Statistics

On a seasonally adjusted basis, the average UK house price decreased by 0.6% in January 2023, following a decrease of 0.4% in December 2022. On a non-seasonally adjusted basis, the average UK house price decreased by 1.1% in January 2023, following a decrease of 0.5% in December 2022.

Average house price, by English region, January 2005 to January 2023. Source: UK House Price Index from the HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland, Office for National Statistics.

Within England, the North East had the highest annual house price inflation in January 2023, at 10.0%, while London had the lowest, at 3.2%. However, the capital city has the highest average house price in England, at £534,000, while the North East has the lowest, at £163,000. And in Northern Ireland, the average house price increased by 10.2% annually, with the average house price there at £175,000.

Disclaimer: The views expressed above are based on industry reports and related news stories and are for informational purposes only . SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.