Are prices in the countries still rising?
The average price paid in both cash- and mortgage-based transactions for a home in England and Wales in December 2022 was £380,450, some £1,900 higher than in November, according to the latest e.surv Acadata House Price Index.
House prices in these countries rose by 0.5% in December, the same rate seen in November.
Acadata analysts John Tindale and Peter Williams noted that while this rate may not be particularly significant in the context of the movement in prices over the last two years, it remains positive, which may come as a surprise to those who are keen market watchers.
They said this is likely to be a consequence of the index’s definition of when a sale takes place and establishes the completion price, coupled with the time lag between the different stages.
On an annual basis, the rate of price growth has slowed from the peak rate of 12.9% in August 2022 to 7.8% by the end of December. This rate has also fallen from November’s 9.2%.
The analysts said market expectations are that the rates of growth will continue to fall and indeed may become negative.
“Our data this month shows a slowing rate of growth, which will surprise no-one, but nevertheless is positive,” Richard Sexton, director at e.surv, commented.
“There are a couple of reasons why our findings are noteworthy. One is that we use all completion data for the period, from the ONS which includes cash sales and is the final price paid – as opposed to a price agreed earlier in the process such as at mortgage approval stage and therefore which might fluctuate subsequently.
“But the other point to be made is that the relative attractiveness of property remains in comparison to other asset groups over the longer term. Housing as an asset group is still outperforming most other investments. It is very likely that whatever the economic weather, the lack of supply will continue to underpin the relative strength of UK housing.”
The e.surv Acadata House Price Index also showed the North East having the largest increase in monthly house price growth among the regions, from 10.1% in the previous month to 13.4%. The East and West Midlands remain the top two regions in terms of having the highest annual rates of price growth, at 14.1% and 13.7% respectively.
By contrast, Greater London has the lowest annual growth rate of just 1.5%, although 21 of the 33 London boroughs saw prices rise on an annual basis. The most expensive inner-city areas recorded falling values – impacting eight of the top 10 boroughs ranked by price. Over the last 12 months, there has been significant change in the ranking of the 33 London boroughs, as measured by their average property values.
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