New figures show UK average house prices increased by 15.5% over the year to July 2022.
The latest house price data published on GOV.UK by HM Land Registry (HMLR) for July 2022 show that average house prices in the UK increased by 15.5% in the year to July 2022, up from 7.8% in the year to June 2022.
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. 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 in 2021.
Commenting on the latest house price data, Jamie Durham, economist at PwC UK, says:
“House prices rose 15.5% to a record £292,000 in July 2022, adding nearly £40,000 to the average home over the last year.
“The high annual growth rate for July this year was primarily driven by lower prices in July last year, as buyers rushed to complete purchases before the stamp duty holiday started to taper off at the end of June 2021.
“This data shows that there was still plenty of momentum in the market in July, despite the weakening economic outlook, with average prices up £6,000 between June and July. However, there have been some signs of a slowdown over the last couple of months in more timely data. Mortgage approvals have now dropped below historical averages and agents are reporting fewer new buyer enquiries.
“Looking forward, we do expect price growth to slow over the coming months as households look again at what they can afford and whether now is the time to buy. At this point, however, we are not expecting a significant decline in prices because while demand is likely to soften there is still a shortage of properties on the market.
“Last week’s appointment of a new Prime Minister and the announcement of the £2,500 energy price cap is likely to improve consumer confidence and ease the pressure on households, which may mean the housing market performs better than would otherwise have been the case.”
Source: ONS
Easiest way to bring house prices down it to Build more Council Houses. This would help in a number of ways.
First it would help house those people in secure housing that will never want to buy a house.
Then the move would reduce pressure for the housing stock available for sale to help reduce both demand and prices.
Third to build more council houses will help kick the economy back into life again because all the components of housing would need to be made then the extra labour needed, White goods produced Kitchens made etc.
This housing would need finance and it could be funded from Rents charged for this housing and the maybe government grants to cover Land and services. But also the reduction given to support some people subsidised with rents from private renting. Maybe a bit of imaginative funding could make this almost self financing. There would also need to be a need to build replacements for council houses sold so the house is financing a direct replacement.