By UK house prices increased by 9.6% in the year to January 2022, down from 10.0% in December 2021.
On a non-seasonally adjusted basis, average house prices in the UK increased by 0.4% between December 2021 and January 2022, down from an increase of 0.7% during the same period a year earlier (December 2020 and January 2021).
House price growth was strongest in Wales, where prices increased by 13.9% in the year to January 2022.
The lowest annual growth was in London, where prices increased by 2.2% in the year to January 2022.
The Royal Institution of Chartered Surveyors’ (RICS’) February 2022 UK Residential Market Survey reported that home sales strengthened in February along with a pick-up in new buyer enquiries, despite the Bank of England’s decision to increase interest rates.
The Bank of England’s Agents’ summary of business conditions 2021 Q4 reported ongoing strong demand for housing and a shortage of properties for sale, which pushed up prices.
The UK Property Transactions Statistics showed that in January 2022, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 106,990.
This is 10.6% lower than a year ago (January 2021). Between December 2021 and January 2022, UK transactions increased by 5.1% on a seasonally adjusted basis, following a large increase in the month prior.
The Bank of England’s Money and Credit January 2022 release reported that mortgage approvals for house purchases (an indicator of future lending) rose to 74,000 in January 2022, up from 71,000 in December 2021.
This is above the pre-pandemic 12-month average up to February 2020 of 66,700 and the highest since July 2021 (75,900).
England
In England the January data shows, on average, house prices have risen by 0.1% since December 2021. The annual price rise of 9.4% takes the average property value to £291,560.
The regional data for England indicates that:
- the East Midlands experienced the greatest increase in its average property value over the last 12 months with a movement of 11.6%
- the East Midlands experienced the greatest monthly growth with an increase of 1.8%
- London saw the lowest annual price growth with an increase of 2.2%
- London saw the most significant monthly price fall with a movement of -1.8%
Price change by region for England
| Region | Average price January 2022 | Annual change % since January 2021 | Monthly change % since December 2021 |
|---|---|---|---|
| East Midlands | £235,503 | 11.6 | 1.8 |
| East of England | £341,629 | 11.5 | 1.4 |
| London | £510,102 | 2.2 | -1.8 |
| North East | £150,787 | 8.3 | 1.7 |
| North West | £199,791 | 9.6 | -0.3 |
| South East | £378,311 | 11.1 | 0.5 |
| South West | £307,468 | 10.9 | -1.1 |
| West Midlands | £235,809 | 10.3 | -0.1 |
| Yorkshire and the Humber | £194,525 | 7.3 | -0.2 |
Repossession sales by volume for England
The lowest number of repossession sales in November 2021 was in the East of England.
The highest number of repossession sales in November 2021 was in the North West.
| Repossession sales | November 2021 |
|---|---|
| East Midlands | 2 |
| East of England | 1 |
| London | 5 |
| North East | 9 |
| North West | 19 |
| South East | 4 |
| South West | 4 |
| West Midlands | 2 |
| Yorkshire and the Humber | 7 |
| England | 53 |
Average price by property type for England
| Property type | January 2022 | January 2021 | Difference % |
|---|---|---|---|
| Detached | £459,987 | £409,299 | 12.4 |
| Semi-detached | £278,310 | £252,171 | 10.4 |
| Terraced | £236,083 | £217,353 | 8.6 |
| Flat/maisonette | £243,827 | £233,302 | 4.5 |
| All | £291,560 | £266,588 | 9.4 |
Funding and buyer status for England
| Transaction type | Average price January 2022 | Annual price change % since January 2021 | Monthly price change since December 2021 |
|---|---|---|---|
| Cash | £274,054 | 9.5 | 0.2 |
| Mortgage | £300,381 | 9.3 | 0.1 |
| First-time buyer | £241,467 | 8.5 | 0.1 |
| Former owner occupier | £335,103 | 10.2 | 0.1 |
Building status for England
| Building status* | Average price January 2022 | Annual price change % since January 2021 | Monthly price change % since November 2021 |
|---|---|---|---|
| New build | £392,091 | 25.8% | 6.2 |
| Existing resold property | £281,852 | 8.4 | 2.1 |
London
London shows, on average, house prices have fallen by 1.8% since December 2021.
An annual price rise of 2.2% takes the average property value to £510,102.
Average price by property type for London
| Property type | January 2022 | January 2021 | Difference % |
|---|---|---|---|
| Detached | £1,023,120 | £964,309 | 6.1 |
| Semi-detached | £654,928 | £621,952 | 5.3 |
| Terraced | £553,729 | £535,223 | 3.5 |
| Flat/maisonette | £428,181 | £427,497 | 0.2 |
| All | £510,102 | £499,115 | 2.2 |
Funding and buyer status for London
| Transaction type | Average price January 2022 | Annual price change % since January 2021 | Monthly price change % since December 2021 |
|---|---|---|---|
| Cash | £530,430 | 2.8 | -1.5 |
| Mortgage | £503,603 | 2.1 | -1.9 |
| First-time buyer | £439,723 | 1.3 | -1.9 |
| Former owner occupier | £587,393 | 3.5 | -1.8 |
Building status for London
| Building status* | Average price January 2022 | Annual price change % since January 2021 | Monthly price change % since November 2021 |
|---|---|---|---|
| New build | £558,015 | 14.8 | 5.5 |
| Existing resold property | [£514,043 | 3.1 | -0.2 |
Wales
Wales shows, on average, house prices have risen by 1.3% since December 2021.
An annual price rise of 13.9% takes the average property value to £206,251.
There were 2 repossession sales for Wales in November 2021.
Average price by property type for Wales
| Property type | January 2022 | January 2021 | Difference % |
|---|---|---|---|
| Detached | £319,526 | £276,415 | 15.6 |
| Semi-detached | £199,736 | £175,326 | 13.9 |
| Terraced | £159,520 | £140,081 | 13.9 |
| Flat/maisonette | £130,738 | £122,374 | 6.8 |
| All | £206,251 | £181,118 | 13.9 |
Funding and buyer status for Wales
| Transaction type | Average price January 2022 | Annual price change % since January 2021 | Monthly price change % since December 2021 |
|---|---|---|---|
| Cash | £200,614 | 13.9 | 1.7 |
| Mortgage | £209,658 | 13.9 | 1.1 |
| First-time buyer | £176,893 | 13.5 | 1.2 |
| Former owner occupier | £240,958 | 14.3 | 1.4 |
Building status for Wales
| Building status* | Average price January 2022 | Annual price change % since January 2021 | Monthly price change % since November 2021 |
|---|---|---|---|
| New build | £294,074 | 30.5 | 4.3 |
| Existing resold property | [£194,917 | 11 | -0.8 |
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
“The bigger than expected jump in inflation, taking it to its highest level in 30 years, and with more to come, will be preying on the Chancellor’s mind when he stands up to deliver his Spring Statement this afternoon.
The housing market continues to perform strongly with house prices continuing to rise, due to lack of stock.
Those buyers who didn’t make their move last year are still keen to do so, assuming they can find the right property, and take advantage of mortgage rates while they remain low.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:
“Another day, another survey showing the resilience of the housing market despite concerns about implications of the war in Ukraine, particularly on inflation and interest rates.
On the ground, existing homeowners whose purchasing power has been buoyed by savings and equity, still remain keen to find homes which fit their post-Covid lifestyle.
Affordability is more of a factor for those buying for the first time so will have some impact on prices.”
Tomer Aboody, director of property lender MT Finance, says:
“To see why house prices continue to perform so strongly, even while interest rates are rising, you need to look at sales volumes, with half the number of transactions taking place in November 2021 compared with the same month the previous year.
This dramatic fall in transactions illustrates why prices continue to rise – lack of supply, combined with high demand is going to push values up to record levels until something changes.
The government needs to do something with stamp duty to incentivise downsizers to release family homes onto the market in order to increase the number of transactions, helping keep price increases in check.
It is not surprising to see Wales continuing to have record increases in prices as the numbers are starting from a lower base.
Any increase in prices is going to be more dramatic than cities such as London where the rise in values is still relatively high but not as much as in the regions.”
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