On average house prices in England rose by 0.9% in February as annual house price growth hit 10.7%.
This takes the average property value to £295,888. The East of England experienced the greatest increase in its average property value over the last 12 months with a movement of 12.5%.
While the East Midlands saw the most significant monthly price fall with a movement of -0.4%
London experienced the greatest monthly growth with an increase of 2.2% but it still has the lowest annual price growth with an increase of 8.1%.
| Region | Average price February 2022 | Annual change % since February 2021 | Monthly change % since January 2022 |
|---|---|---|---|
| East Midlands | £235,993 | 10.9 | -0.4 |
| East of England | £345,652 | 12.5 | 1.3 |
| London | £529,882 | 8.1 | 2.2 |
| North East | £152,551 | 9.4 | 1.2 |
| North West | £203,538 | 10.2 | 1.6 |
| South East | £380,528 | 12 | -0.3 |
| South West | £312,697 | 12.5 | 1.2 |
| West Midlands | £237,757 | 10 | 0.3 |
| Yorkshire and the Humber | £198,599 | 9.5 | 1.2 |
Repossession sales by volume for England
The lowest number of repossession sales in December 2021 was in the East of England.
The highest number of repossession sales in December 2021 was in the North West.
| Repossession sales | December 2021 |
|---|---|
| East Midlands | 5 |
| East of England | 0 |
| London | 5 |
| North East | 7 |
| North West | 15 |
| South East | 7 |
| South West | 1 |
| West Midlands | 5 |
| Yorkshire and the Humber | 6 |
| England | 51 |
| Property type | February 2022 | February 2021 | Difference |
|---|---|---|---|
| Detached | £469,095 | £409,913 | 14.4 |
| Semi-detached | £281,313 | £252,729 | 11.3 |
| Terraced | £238,145 | £219,068 | 8.7 |
| Flat/maisonette | £250,047 | £231,972 | 7.8 |
| All | £295,888 | £267,192 | 10.7 |
| Transaction type | Average price February 2022 | Annual price change % since February 2021 | Monthly price change % since January 2022 |
|---|---|---|---|
| Cash | £277,617 | 10.5 | 1 |
| Mortgage | £305,032 | 10.8 | 0.9 |
| First-time buyer | £245,411 | 9.9 | 0.9 |
| Former owner occupier | £339,628 | 11.6 | 0.9 |
| Building status | Average price February 2022 | Annual price change % since February 2021 | Monthly price change % since January 2022 |
|---|---|---|---|
| New build | £377,190 | 19.6 | -0.6 |
| Existing resold property | £284,762 | 8.5 | 1.2 |
London
London shows, on average, house prices have risen by 2.2% since January 2022. An annual price rise of 8.1% takes the average property value to £529,882.
| Property type | February 2022 | February 2021 | Difference % |
|---|---|---|---|
| Detached | £1,074,093 | £956,499 | 12.3 |
| Semi-detached | £678,079 | £615,085 | 10.2 |
| Terraced | £564,869 | £528,384 | 6.9 |
| Flat/maisonette | £450,576 | £417,610 | 7.9 |
| All | £529,882 | £490,384 | 8.1 |
| Transaction type | Average price February 2022 | Annual price change % since February 2021 | Monthly price change % since January 2022 |
|---|---|---|---|
| Cash | £533,011 | 9.2 | 3.1 |
| Mortgage | £522,773 | 7.8 | 2 |
| First-time buyer | £458,863 | 7.5 | 2.6 |
| Former owner occupier | £606,934 | 8.9 | 1.8 |
| Building status | Average price February 2022 | Annual price change % since February 2021 | Monthly price change % since January 2022 |
|---|---|---|---|
| New build | £538,154 | 10.7 | -1.3 |
| Existing resold property | £518,045 | 4.1 | 0.9 |
The UK Property Transactions Statistics showed that in February 2022, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 112,240.
This is 20.8% lower than a year ago (February 2021). Between January and February 2022, UK transactions increased by 4.4% on a seasonally adjusted basis.
House price growth was strongest in Wales where prices increased by 14.2% in the year to February 2022.
The lowest annual growth was in London, where prices increased by 8.1% in the year to February 2022.
Reaction
Alex Lyle, director of Richmond estate agency Antony Roberts:
“Although it may not be seeing the fastest levels of growth compared with other parts of the country, London continues its upwards trend in prices, with detached family homes doing particularly well.
“We continue to see large numbers of viewings, multiple offers and sealed bid scenarios, with buyers on our patch anxious not so much about rising house prices or interest rates but limited choice.
“The housing market has been stubbornly short on supply but more stock is becoming available, particularly in the mid- to upper-family house market, as those properties look their best at this time of year. Sellers are also bringing forward plans in the hope of benefiting from what could turn out to be a real window of opportunity.”
Mark Harris, managing director of mortgage broker SPF Private Clients:
“The ready availability of cheap finance is one of the contributing factors to higher house prices.
“Lenders remain keen to lend, with borrowers opting for longer-term fixes in order to counter the considerable uncertainty in the world.
“While changes are being consulted on to relax some affordability criteria and allow certain buyers to borrow more, a return to irresponsible lending is unlikely given there would still be barriers in place.”
Sundeep Patel, director of sales at specialist lender, Together:
“Average house prices rose from £275,000 in January to £277,000 in February, fuelled by lingering supply versus demand issues.
“As inflation and energy cost worries mount, the property market inflated further, in part due to excessive demand.
“More recently, we have seen several banks rush to increase their rates following the Bank of England’s latest interest rise. Caught between the cost-of-living squeeze and higher interest rates, first time buyers hoping to find a deal before the summer months are likely to struggle to climb the property ladder and could find themselves priced out altogether.
“Ongoing economic uncertainty will directly impact people’s ability to spend on property – but at this stage we just don’t know by how much.
“Over the next few months, we might expect activity to cool as most homeowners opt to stay put and use any available money to meet surging household bills this summer. However, as recent rises have shown, it’s still an unpredictable market.”
Chris Hutchinson, CEO of rental platform Canopy:
“House prices are still on the rise at a time where finances are being stretched to the limits. And rising energy bills and the cost of living crisis aren’t making things any easier.
“Many potential homebuyers will be putting their homeownership dreams on the back burner amidst fears of not being able to raise the necessary finds or keep up with repayments.
“Many choose to rent and are happy to do so, but for those who do have the end goal of homeownership, they may currently feel trapped in a constant cycle of renting as they struggle to get themselves onto the property ladder.
“This extra time can be used to ensure a potential homebuyer is in the best possible position for when the time comes. Ensuring rental payments count towards their credit score and taking steps to improve financial wellness will give them an extra edge over the competition when the time comes.“
Andrew Montlake, managing director of the UK-wide mortgage broker, Coreco:
“Has the property market ever been so disconnected from economic reality? For prices to rise further in February should create more unease than it does celebration.
“Yes, the jobs market is strong but the latest inflation data coupled with stalling economic growth in February suggest the bull run will soon come to an end. Even then, though, average property values are unlikely to fall by much as mortgage rates are still very competitive and supply levels are ridiculously low.
“As it always does, the supply and demand imbalance will support average property values moving forward, even as we enter a potentially significant economic storm.”
Samuel Gee, director at Bristol-based Manning Gee Investments:
“The property market powered on in February, primarily due to the unprecedented lack of stock, with buyers competing intensely for whatever comes to market.
“It’s an unsustainable situation with first-time buyers simply priced out of the market. With inflation hitting 7%, and interest rates set to rise further, something will have to give and the current property bull market could soon turn into a bear.”
Andrew Simmonds, director at Bristol-based Parker’s Estate Agents:
“In Bristol, Somerset and the West Country, as in most of the UK, there is an extraordinary lack of stock and this is supporting prices. Any properties that do come to the market are sold quickly, often in a matter of days or even hours, when marketed at the right asking price.
“The vast majority of homeowners with a mortgage are on a fixed rate, so the impact of recent rate rises won’t be instantaneous. But with inflation rising higher than expected, we may see growing uncertainty among buyers and lenders alike.”
Rhys Schofield, managing director at Belper-based Peak Mortgages and Protection:
“House prices are frighteningly, absurdly high, and the problem, as ever, is a lack of supply. The alternative to buying is renting but when rents are going up even faster, the lack of property becomes a real issue. It’s all very well house prices going up but those fortunate enough to be on the property ladder are leaving a heck of a lot of people behind.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“These numbers show house prices continuing on their apparently inexorable upward path but that’s not quite what’s happening on the ground now.
“Demand is still well ahead of supply but concerns about the rising cost of living, squeezed pay packets and potentially further interest rate rises, are reducing price growth and transaction numbers.
“Looking forward, we expect activity to return to more ‘normal’ pre-pandemic conditions as supply picks up as part of the usual spring bounce.”
Gareth Lewis, commercial director of property lender MT Finance:
“The gap between supply and demand continues to push property prices to new highs. As the cost of living also continues to rise, buyers are having to find more money to purchase their dream home, while at the same time paying more for everything else.
“Those trying to move up the ladder are finding it harder still as the trading gap grows wider and the home they are moving to becomes relatively more expensive. First-time buyers are finding it even more difficult, with even more money required for a deposit.
“Some reform to stamp duty, perhaps removing the need for downsizers to pay it, needs to be considered to stimulate the market and increase supply, which will help keep prices in check.”
Paul McGerrigan, CEO at national fintech brokerage Loan.co.uk:
“Rising interest rates and growing financial pressures have done little to dampen demand for property as average UK house prices continued a strong upward trajectory, up 10.9% over the year to almost £277,000.
“Wales continues to be the UK’s property hot-spot with a considerable 14.2% increase over the 12 months to February, whilst London lags behind the curve with 8.1% increase.
“We expect this trend to continue in the coming months, despite the economic stranglehold of soaring energy costs, rising interest rates and sharp spikes in the cost of goods, as there is still a considerable shortage of supply and demand for more space and higher quality of life will remain a priority to those who can afford it.
“However, the strong upward trend could be dampened by two key factors. 1. If the Bank of England’s Monetary Policy Committee continues to increase rates over the coming months 2. If the new trend of tightening affordability tests on mortgages increases across all of the UK banks.”
Stuart Law, CEO of the Assetz Group:
“Following two years’ of unprecedented growth, today’s data shows another month of house price increases. The pandemic has re-shaped the way we chose to live and where. As a result, the market continues to be defined by a dramatic supply and demand imbalance, with demand far outweighing available housing stock in most locations, despite the rising cost of living.
“I still don’t foresee housing price growth slowing as quickly as some think it will. While interest rates are on the rise, they still remain low by historic standards, supporting relatively cheap borrowing in the short term, and justifying many buyers’ decision to push on despite rising prices. I would still be surprised to see rates rise much beyond 1% this year, if at all, so cheap borrowing could support demand and pricing for some time yet, in tandem with powerful post-pandemic lifestyle drivers that remain one of the main factors behind the housing market boom.
“However, I must stress that the current dynamics are unsustainable. Without a better balance between supply and demand, we run the risk of a market that overheats, with many aspiring buyers unable to get onto the ladder or jump up to the next rung. As pressures on household incomes grow, more people could fall into this category which starts to become an unhealthy pattern for the wider market. We need to aim for sustained, steady periods of growth, rather than a cycle of boom and bust.
“We can achieve this, but only if we take urgent action to boost housing supply to balance demand and temper pricing. This means mobilising housebuilding at scale, and, crucially, revitalising the SME housebuilding sector, which could deliver thousands more homes if supported properly.
“To do this, we need bold planning reform urgently to lower build costs for construction companies, and we need to use all the financial tools available to help housebuilders deal with immediate costs associated with pressures on global supply chains. This means public sector funding through the levelling up agenda, but also harnessing the appetite we’re seeing from private investors to support the housebuilding market.”
