Figures released this morning show that average house prices increased over the year in England to £305,000 (7.3%), in Wales to £213,000 (8.6%), in Scotland to £192,000 (11.6%) and in Northern Ireland to £169,000 (9.6%).
On a non-seasonally adjusted basis, average house prices in the UK grew by 1.0% between May and June 2022, representing the eighth consecutive monthly increase. This compares with an increase of 5.7% during the same period a year earlier (May and June 2021).
On a seasonally adjusted basis, average house prices in the UK increased by 0.5% between May and June 2022, following an increase of 0.8% in the previous month.
The East of England was the region with the highest annual house price growth, with average prices increasing by 9.7% in the year to June 2022. This was down from a growth rate of 14.5% in May 2022.
The lowest annual house price growth was in the North East, where average prices increased by 3.6% over the year to June 2022, down from 10.9% in May 2022.
London's average house prices remain the most expensive of any region in the UK, with the average house price now at a record level of £538,000 in June 2022.
The North East continued to have the lowest average house price at £158,000.
Anna Clare Harper, director of real estate technology platform IMMO, says: "This slowdown in price growth will be welcomed by those struggling with affordability constraints since the average house price remains over 10 times average annual individual earnings
"It also makes sense. House prices and house price growth figures both reflect and affect consumer and investor confidence.
"House prices are the result of supply and demand. Interest rate rises and talk of recession are cooling demand. In recessionary times and when interest rates are higher, demand for buying properties tends to fall. However, we all still need a roof over our heads. Demand for housing does not fall. Demand shifts from buying to renting properties, which offers more flexibility.
"Unfortunately, the shortage of supply of both properties for ownership and for rent continues. For this reason, the slowdown in growth should not be taken as an indicator of a major crash to follow.
"Professional investors are needed to plug the gap in quality, energy efficient, affordable homes for people and communities across the UK."
Clare Beardmore, Head of Broker and Propositions at Legal & General Mortgage Club, comments: "While growth is gradually slowing, the housing market is thankfully proving more resilient than we might have hoped. The threat that a recession poses to house prices certainly shouldn’t be overlooked, but the imbalance between housing supply and demand and the UK’s longstanding commitment to homeownership is among the factors counterbalancing this, or at least for the time being. Over half a million people aged between 50 and 65 have also left the workforce since the pandemic began, stimulating further property sales.
“Although house price inflation will likely dip in the coming months, this should not alarm anyone. The desire to press ahead in the face of economic headwinds is matched by lenders, advisers, and borrowers.”
James Briggs, head of personal finance intermediary sales at specialist lender, Together, said: “House prices crept up again in June, by 7.8%, despite the surrounding economic and political upheavals in the UK and abroad. However, many signs point to the housing market cooling in the coming months.
“Despite today’s increase, economic uncertainty and sluggish growth continue to put pressure on people’s finances, potentially deterring prospective buyers from pursuing their property plans this year. With higher interest rates, increasing costs and rising inflation, buyers and sellers may continue to find prices begin to drop as demand softens. Given the potential of a recession, how long this’ll last is not yet clear. The market remains volatile, and we can expect much more price activity as we enter the winter months.”
