Annual increase for UK average house prices, Office for National Statistics report shows

According to the latest House Price Index from the Government, we continue to see an annual increase in average house prices in the UK.

The main highlights of the report include:

• UK average house prices increased by 9.6% over the year to January 2022, down from 10.0% in December 2021.
• The average UK house price was £274,000 in January 2022, which is £24,000 higher than this time last year.
• Average house prices increased over the year; in England to £292,000 (9.4%), in Wales to £206,000 (13.9%), in Scotland to £183,000 (10.8%) and in Northern Ireland to £159,000 (7.9%).
• London continues to be the region with the lowest annual growth at 2.2%.

Andy Sommerville, Director at property data insight and technology provider Search Acumen, comments: “Historically, January is a slower month for house price growth as people pause and take stock of their finances at the start of a New Year. However, this year, the market continued to defy expectations and house prices climbed 9.6% in the first month of the year.

“The increase in property prices across the UK can be attributed to the gap in demand and levels of stock in the market. The solid momentum in prices has put homeowners looking to move in a strong position to sell for a premium, while first time buyers will have to lower expectations, or continue saving in the current market. “As we look ahead to the spring, we can expect to see a wave of newly listed properties to the market, which could contribute to the easing of house price growth. Added to this will be the further pinch to household spending, with energy bills set to rise from April coupled with elevated fuel and food costs. We can expect to see a consequent dampening of activity that will subdue the rise in house prices that we are currently experiencing.”