Live: Average house prices and 'time to sell' in each UK region revealed - as housing market confounds expectations to 'hit record level' (2023)

FAQs

What is the record house prices in the UK? ›

Average House Prices in the United Kingdom averaged 128453.51 GBP from 1983 until 2023, reaching an all time high of 294844.95 GBP in June of 2022 and a record low of 26187.81 GBP in January of 1983. This page includes a chart with historical data for the United Kingdom Average House Prices.

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.

Rising rates make it more expensive to borrow money which means fewer potential buyers can afford mortgages. The Office for Budget Responsibility (OBR) predicts that house prices will fall 9% over the next two years. They predict they will rise again in 2025.

UK house prices rose by 0.5% in April after seven months of declines, according to Nationwide building society. The modest increase took the average price of a home to £260,441 last month, from £257,122 in March.

Steadily increasing prices throughout 2022 resulted in the average UK house price reaching a record high. The average UK house price was £296,000 in October 2022, which is £33,000 higher than this time last year.

The average house in the UK currently costs around nine-times average earnings, based on data as at 30 November 2022. The last time house prices were this expensive relative to average earnings was in the year 1876, nearly 150 years ago.

While reduced interest rates may mean demand for houses could increase, this will also make monthly mortgage payments more affordable, which could mean 2023 is the perfect year for you to buy a house instead of waiting until 2024.

Lloyds and Halifax expect house prices to fall 8% in 2023, while Nationwide and online estate agent Zoopla are predicting falls of 5%. But while the consensus is that prices will fall this year, “it is a more nuanced picture”, says Myron Jobson, senior personal finance analyst at interactive investor.

The housing market will cool sharply next year after a bumpy 2022, industry experts are predicting, as the UK contends with recession and higher mortgage rates.

The 20 areas of England where house prices are rising fastest, including in London, Birmingham and Sheffield. These neighbourhoods in England have seen the greatest increase in property prices in the last year - find out if your local area has made the shortlist.

How much has the average house price increase over the last 10 years in the UK? ›

House prices have soared over the past decade in the UK but some areas have seen much bigger gains than others... and one has even seen a fall. Official figures from the ONS show the average UK house prices rose from £167,716 in January 2013 to £290,000 at the end of January 2023 - a gain of 73 per cent.

The average UK house price was £288,000 in February 2023, which is £16,000 higher than 12 months ago. Average house prices increased over the 12 months to £308,000 (6.0%) in England, to £215,000 in Wales (6.4%), to £180,000 in Scotland (1.0%) and to £175,000 in Northern Ireland (10.2%).

With an average property price of £521,700, London leads the way as the most expensive place to buy a home in the United Kingdom. In a composite of 20 UK cities for March 2023, the Zoopla House Price Index found that Cambridge is the second most expensive city to buy property, with an average price of £465,000.

House prices then went on to fall by as much as 20pc in 2008. If today's prices were to follow the same pattern, the value of the average home would fall from £284,000 to about £227,000 – a drop of nearly £60,000 peak-to-trough.

The 2008 financial crash

The biggest fall in UK house prices in recent memory was brought about by the financial crash of 2007-2009, which occurred as a result of deregulation in the financial industry and mortgage brokers in particular.

However, affordability fluctuates wildly depending on the region. Houses in the Midlands cost 7.5 per times the regional average salary, compared with 6.5 in the North West, Yorkshire and Wales and 12 times in London. Affordability in Scotland is best, where properties typically cost 5.5 times the average salary.

The average British home now costs about nine times average earnings: one estimate I recently read reckoned that the last time UK houses were this expensive was in 1876.

Interest rates: The Bank of England sets the base interest rate level and, if it is relatively low, people can afford to spend more on a property as the cost of borrowing is lower. This tends to push house prices up.

The UK housing market is facing a number of headwinds in 2023, including rising interest rates, diminishing affordability, and economic uncertainty. As a result, it is likely that house price growth will slow or even decline in the coming year.

Analysts at Nomura predict UK house prices will drop 15 per cent by mid-2024, estate agency Savills (SVS) and UK banking group Lloyds (LLOY) forecast prices will slump 10 per cent in 2023, while Knight Frank, another agency, is predicting a 10 per cent fall over 2023 and 2024.

Why buying real estate in 2023 could be a good idea? ›

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

If you're considering selling your house or looking to upgrade, now may be the perfect time for a successful transaction. Prices are rising and estate agents Oliver Rayns have estimated that UK estate values will continue to increase until 2023, making now an ideal opportunity to capitalise on it.

Historically, home prices tend to rise over time, not fall. Prices are currently coming down in some markets, and the national median price was ever-so-slightly lower in February 2023 than it was in 2022, but experts do not expect dramatic drops.

The most recent Homebuyer.com data indicates that, for first-time home buyers, May 2023 is a good time to buy a house. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

In addition, during recessions, people with access to cash are in a better position to take advantage of investment opportunities that can significantly improve their finances long-term.

Will house prices go down in a recession? While the cost of financing a home typically increases when interest rates are on the rise, home prices themselves may actually decline. “Usually, during a recession or periods of higher interest rates, demand slows and values of homes come down,” says Miller.

A recession a can be a good time to buy a house, provided your own economic situation is sound. Foreclosures and short sales may be enticing due to low offer prices, but they carry some risks and potentially higher costs. Shop around for the best mortgage rates.

Scotland is the quickest market in Great Britain, while London takes the longest to find a buyer on average (65 days). Across Great Britain, it is currently taking 55 days on average to find a buyer and a further 165 days to complete a sale.

York saw the highest property price inflation of any town or city in in England in Wales during 2022, growing by +23.1% (£69,648) over the course of the last year. Since March 2020, average house prices in the historic city have risen by +41.9% from £261,183 to £370,639 (£109,457).

What is the average price of a detached house in England? ›

The UK as a whole

Our underlying forecasts suggest that property prices will rise 23% by 2020 and 97% by 2030. An averagely priced home costing £280,000 today, would therefore cost around £344,000 five years from now and over half a million in fifteen years' time.

Today, the average UK homebuyer is forking out £278,436 on the average property. That's a total increase of 464%, with house prices climbing by an average of 9.3%, or £4,582, every single year over the last 50 years.

The average home price in the U.S. is $348,079 in 2022. Hawaii earned the title of the most expensive state to buy a house in, whereas the most affordable state to buy a house is West Virginia.

The median home sales price in the United States is $436,800 as of the first quarter of 2023. That's down 9% from the fourth quarter of 2022 when the median home sales price was $479,500.

UK average house price drops to £285,579 in biggest fall since 2008. Homebuyers needed £285,579 to afford a property in the UK in November as the average house price fell by 2.3%.

The Penthouse at Central Park Tower, New York — $250 Million. Call it a coincidence, but the most expensive home in the world is perched atop the world's tallest residential building on New York City's Billionaires' Row.

S alcombe in Devon has been named as the UK's most expensive seaside town to buy a house in.

House prices then went on to fall by as much as 20pc in 2008. If today's prices were to follow the same pattern, the value of the average home would fall from £284,000 to about £227,000 – a drop of nearly £60,000 peak-to-trough.

How did the 2008 recession affect the housing market UK? ›

On an inflation-adjusted basis, the effect of the Global Financial Crisis means the average UK house price is 11% below its 2007 level. This has occurred despite a prolonged period of abnormally low interest rates. In August 2007, the average interest rate for a new mortgage was 5.88%. Now, it stands at just 2.04%.

The Crash:

Banks stopped lending as freely, and people found it harder to get mortgages. This, in turn, led to a sharp decline in property prices, as buyers dried up and sellers struggled to offload their properties. At its worst, the UK property market fell by around 20%.

Double digit inflation peaks at over 20% in the middle of 1980. This combines with the early 1980s recession such that prices fall by 17% in real terms.

The Chartwell Estate, located in Beverly Hills, California, is owned by the late head of Univision, Jerry Perenchi. Built in 1933, the French neoclassical home encompasses 25,000 square feet of land. It is situated on a 10-acre expanse of manicured lawns and gardens.

220 Central Park South, Penthouse 73—$188 Million

In 2019, hedge fund owner Ken Griffin logged the highest amount paid for a residence on record in the US, when he bought a penthouse for $238 million in the lauded limestone tower.

1. The One, Los Angeles, California | Most Expensive Houses. The One, which took eight years to create, has surpassed all other pricey mansions in the US to claim the top rank. Nile Niami's modern masterpiece, this private mansion is situated on a five-acre site in Bel Air, Los Angeles, California.

The richest neighbourhoods in the UK are all located in London, with the areas of Kensington and Chelsea and Hammersmith and Fulham topping the list. In October, the Office for National Statistics (ONS) released its latest data based on the total gross disposable household income (GDHI) across the country in 2020.

Bristol. The first location in the top 15 most expensive places to live in the UK outside of the South-West. Bristol is based in the South-East of England and is a hub of art and culture. Bristol is one of the best places in the UK for transport.