By Legal Futures Associate Search Acumen
Latest ONS HPI figures have been published this morning and show:
- On a seasonally adjusted basis, the average UK house price decreased by 0.2% between November and December 2022, following an increase of 0.5% in the previous month.
- On a non-seasonally adjusted basis, the average UK house price decreased by 0.4% between November and December 2022.
- The average UK house price was £294,000 in December 2022, which is £26,000 higher than the same time last year, but only a slight increase from the previous month’s £295,000.
- The average UK house price annual percentage change was 9.8% in the year to December 2022, down from 10.6% in the year to November 2022.
Andy Sommerville, Director at Search Acumen, the property data and insight provider, comments:
“In line with the macro-economic outlook that begun in 2022 and has continued into this year, it is unsurprising to see a small decrease in house price values this month. With persistent high inflation, the continued cost-of-living crisis, and energy prices remaining high, we are anticipating similar figures for the next few months despite a softer landing for the economy than expected in December noting an underlying resilience.
“As property values bear the brunt of this challenging economic environment, for homebuyers and sellers this translates to heightened risk of their purchase collapsing, with down valuations and expiring mortgage offers on the rise, not to mention those pulling out of a sale entirely. This could cause stagnation in the housing market, having a serious impact on the economies that rely on it, as well as consumer confidence.
“A key tool in the arsenal for conveyancers, brokers and estate agents to keep transactions moving at pace is the effective use of technology – not just linking parties together for better communication, but automating the mundane administration behind the scenes to accelerate the process altogether. This relieves the pressure from all parties, leaving lawyers able to focus on the technical advisory roles they are vital for.”