National house price rises are slow but remain positive, according to data gleaned from e.surv’s December House Price Index for England and Wales.
According to the Index, price increases are still evident in the North while the South is weakening – London is the region with lowest annual price growth at 1.5%, and the East Midlands again records the top regional annual price increase at 14.1%
With the average house price now £380,450, this marks a monthly growth of 0.5%, and an annual change of +7.8%.
Richard Sexton, director at e.surv, said: “Our data this month shows a slowing rate of growth, which will surprise no-one but nevertheless is positive.
“The average completion price paid in both cash- and mortgage-based transactions for a home in England and Wales was £380,450, some £1,900 higher than in November.
“There are a couple of reasons why our findings are noteworthy,” he added.
“One is that we use all completion data for the period, from the ONS which includes cash sales and is the final price paid – as opposed to a price agreed earlier in the process such as at mortgage approval stage and therefore which might fluctuate subsequently.
“But the other point to be made is that the relative attractiveness of property remains in comparison to other asset groups over the longer-term.
“From the start of the pandemic in March 2020 to the end of November 2022, the average price paid for a home has increased by some £66,100, or around 21.1%.
“Housing as an asset group is still outperforming most other investments – particularly when you see that growth figure over the period is greater than that in consumer price inflation (including housing – CPIH) of 14.9% over the same period.”
Sexton concluded: “It is very likely that whatever the economic weather the lack of supply will continue to underpin the relative strength of UK housing.”
