16 Sep 2022
UK average house prices increased by 15.5% over the year to July 2022, up from 7.8% in June 2022, according to official data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. This is the highest annual inflation rate the UK has seen since May 2003. This jump in annual inflation was mainly because of a base effect from the falls in prices seen this time last year, as a result of changes in the stamp duty holiday, says the report. Average UK house prices increased by £6,000 between June and July this year, compared with a fall of £13,000 between the same months last year. The average UK house price was £292,000 in July 2022, which is £39,000 higher than this time last year. Average house prices increased over the year in England to £312,000 (16.4%), in Wales to £220,000 (17.6%), in Scotland to £193,000 (9.9%) and in Northern Ireland to £169,000 (9.6%).
What are HMLR saying?
“It is worth noting that as the coronavirus (COVID-19) pandemic impacted on the supply of housing transactions for a period of time, we may see larger revisions to the published UK House Price Index (HPI) estimates than usual,” says HMLR as it continues to process the backlog. “The total number of processed transactions feeding into this month's release (including those from previous months, which are incorporated in line with our revisions policy) has increased compared with the numbers seen throughout the coronavirus pandemic period. While this indicates an improvement in the quality of the UK HPI estimates going forward, it may also result in revisions to previous months that are higher than usual, as more transactions are now available in our calculations.” Speaking to The Guardian, Jonathan Hopper, the chief executive of Garrington Property Finders, said the big jump being reported was “first and foremost a statistical anomaly. Those of a nervous disposition may want to look away from the official house price data in the coming months, as we’re set for a rollercoaster ride.”