According to the latest UK House Price Index, property values saw a subtle yet significant rise over the course of 2022, ending on a December average of £294,329 – an increase of over £21,000 from the opening January price.
Having closed the year with an average property value of over £26,000 more than the previous December, 2022 signified another healthy growth period for the UK market.
The summer months brought them the most movement with a decrease in the average property price of 5.3% between May and June, before a significant 7.4% rise between June and July.
Regionally, the South East saw the biggest increase in property value (£29,185) between January and December 2022, with London not far behind with a rise of £25,760 between the start and end of the year.
Notably, however, property prices in these regions are well above the UK average, with London property currently valued at least £250,000 more than the rest of the country.
Of more interest to investors should perhaps be the more affordable Midland and Northern regions. The East Midlands, for example, saw a rise in property prices of £24,292 between the start and end of the year, with property values peaking at £256,159 in December.
The North West performed similarly well with an above-average rise of £21,127 and a peak value of £221,432 in November – 40% lower than the London equivalent.
In most regions, property prices reached their peak in November with the UK average coming to £295,608, following a steady rise after the summer months. This may well be the last significant increase we’ve seen for a while, however, with experts predicting a slowdown of this recent growth period in 2023. In December, property values did indeed fall slightly again, but this does not warrant causing panic!