UK House Price Growth at 0.2%
The latest UK House Price Index shows a 0.2% growth year-on-year in August 2023. These figures were down 0.5% from the year-on-year July 2023 growth percentage.
The UK House Price Index is updated monthly, collecting data from HM Land Registry, Land and Property Services Northern Ireland, and Registers of Scotland.
Want to get started with buy-to-let property investment? Stay up to date with the latest property news and developments with the following useful guide.
Highlights from the UK House Price Index
● Average UK house prices went up 0.2% in the year leading up to August 2023. This is down from July 2023’s 0.7% growth.
● The average UK house price was £291,000 in August, roughly the same as 12 months prior. However, that valuation is £9,000 above the year’s low point back in March.
● House prices did not change in England, with the average remaining at £310,000. However, Wales saw a decrease of 0.1% to £217,000. Scottish house prices went up by 1.1% to £194,000.
● Northern England saw the most significant percentage change compared to other regions, with the Northwest, Northeast, Yorkshire, and the Humber posting solid growth between 0.4 and 6.3%.
● In contrast, the East of England saw the most significant price decline (-1.6%).
For a detailed look at the market, see our 2023 guide covering the latest house price predictions.
Why not learn more about how to get into real estate investing in the UK with some of the useful resources available online.
UK House Prices Property Type Breakdown
Regarding property types, terraced properties saw the largest price decline, falling by 0.90%. Meanwhile, semi-detached homes saw the most significant growth at 0.90%.
| Property Type | Percentage Growth (Year-on-Year) | Current Price |
|---|---|---|
| Detached | 0.80% | £458,224 |
| Semi-detached | 0.90% | £283,237 |
| Terraced | -0.90% | £236,996 |
| Flats and maisonettes | -0.20% | £232,556 |
| All | 0.20% | £291,044 |
Comparing the recent figures with July 2023, detached houses did not increase or decrease in value. However, flats and semi-detached homes increased by 0.60% and 0.70% respectively.
| Property Type | Percentage Growth (July – August) |
|---|---|
| Detached | No change |
| Semi-detached | 0.70% |
| Terraced | 0.10% |
| Flats and maisonettes | 0.60% |
| All | 0.30% |
What Factors Affect House Prices in the UK?
The main thing influencing house prices is high inflation and interest rates.
Over the last few months, inflation fell to 6.7% – still far off from the Bank of England’s 2%.
To curb inflation, the Bank of England raised interest rates 14 times until it reached 5.25%.
The current cost of living crisis means more people have less money to spend on property, which has slowed price growth.
However, predictions suggest that the housing market will begin to recover in 2025. In that year, prices are predicted to reach £300,000.
While property growth is slow right now, a long-term property investment strategy could pay off in the next few years, provided the market continues as forecasted.
