Average house prices in the UK experienced a rise of 1.7% over the last 12 months, according to the latest finding from the Office for National Statistics (ONS)
The increase represents a slight decrease in average house prices in the UK from May 2023.
The average house price in the UK for June 2023 settled at £288,000. This is a £5,000 increase compared to the same period last year; however, it is £5,000 less than the most recent peak recorded in November 2022.
Average house prices in the UK by region
In England, prices rose to an average of £306,000 (1.9% increase); in Wales, they reached £213,000 (0.6% increase); and in Northern Ireland, they reached £174,000 (2.7% increase). Northern Ireland remains the cheapest to buy a house in the UK with the average house.
The average house price in Scotland remained relatively stable at £189,000.
Among the English regions, the North East experienced the largest annual percentage change in the year up to June 2023, with an increase of 4.7%. London recorded the lowest change, with a decrease of 0.6%.
House prices in London declined by 0.6%, which is the smallest increase compared to other areas in England. From May 2022 to May 2023, prices only rose by 0.7%. Between May 2023 and June 2023, the average house price in London increased by £3,000, but this was less than the £9,000 increase during the same months the previous year.
This is the first time since November 2019 that London has experienced negative annual inflation in house prices, meaning prices have actually decreased by 1.2%. It’s also the first time since May 2020 that the North East region had negative annual inflation of 0.7%.
Construction industry reacts to the latest ONS statistics
“The spring bounce has been more of a spring bump in today’s ONS house price results. Whilst we’ve been used to a prolonged period of monthly house price growth for the past few years, alongside Spring’s typically seasonally high demand, these latest figures set the tone for a cooler end to the summer, commented Nick Leeming, chairman of Jackson-Stops.
“As August progresses, it is likely values won’t pick up pace in the short term as family breaks and school holidays take precedence. What will be telling for the industry are the values that will be recorded in September – another typical ‘bounce’ month in the calendar as many try to move before Christmas,” he explained.
All estimates are provisional and are subject to revision. All statistics provided are non-seasonally adjusted estimates unless stated otherwise.
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