What Does the Latest UK House Price Index Mean for Investors?

What Does the Latest UK House Price Index Mean for Investors?

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!