Data from the Office for National Statistics shows that despite gloom in the property market, house prices still seem to be soaring. The rate of increase is down from 9.3 percent in December 2022 to 6.3 percent in the 12 months to January 2023, but this still means that the average house price is now £290,000, which is £17,000 higher than in January 2022.
Main points
- Average UK house prices increased by 6.3% in the 12 months to January 2023, down from 9.3% in December 2022.
- 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%).
- Scotland’s annual house price inflation has generally been slowing since the recent peak of 13.8% in the 12 months to April 2022, slowing to 1.0% in the 12 months to January 2023.
- The North East saw the highest annual percentage change of all English regions in the 12 months to January 2023 (10.0%), while London saw the lowest (3.2%).
UK House Prices
The latest house price data published on GOV.UK by HM Land Registry (HMLR) for January 2023 show that average house prices in the UK increased by 6.3% in the 12 months to January 2023. This was down from 9.3% in the 12 months to December 2022 (Figure 1).
The coronavirus pandemic affected the supply of housing transactions for a period of time.
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. This is known as a base effect.
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.
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.
House Prices by Country
£he average house price annual percentage change slowed in England, Wales and Scotland in the 12 months to January 2023, compared with the 12 months to December 2022, and in Northern Ireland over the year to Quarter 4 (Oct to Dec) 2022.
The average house price in Scotland increased by 1.0% over the 12 months to January 2023, slowing from an increase of 5.1% in the 12 months to December 2022. This was because the average house price in Scotland increased by 3.4% between December 2021 and January 2022, while the average price decreased by 0.5% between December 2022 and January 2023. The average house price in Scotland was £185,000 in January 2023. Annual house price inflation in Scotland has generally been slowing since the recent peak of 13.8% in the 12 months to April 2022.
The average house price in Wales increased by 5.8% over the 12 months to January 2023, down from an increase of 10.1% in the 12 months to December 2022. The average house price in Wales was £217,000 in January 2023.
The average house price in England increased by 6.9% over the 12 months to January 2023, down from an increase of 9.8% in the 12 months to December 2022. The average house price in England was £310,000 in January 2023.
The average house price in Northern Ireland increased by 10.2% over the year to Quarter 4 2022. Northern Ireland remains the cheapest country in the UK in which to purchase a property, with the average house price at £175,000.Back to table of contents
House Prices by Region in England
The North East continued to have the lowest average house price of all English regions, at £163,000 in January 2023.
The North East was also the region with the highest annual house price inflation in January 2023. Average prices in the North East increased by 10.0% in the 12 months to January 2023, down from an annual percentage change of 10.8% in December 2022.
London’s average house prices remain the most expensive of any region in the UK, with an average price of £534,000 in January 2023.
London was the English region with the lowest annual house price inflation, with average prices increasing by 3.2% in the 12 months to January 2023. This was down from an annual percentage change of 5.9% in December 2022.
See also: Stamp Duty Refunds: All You Need to Know
