Compared to the 5.9% yearly rise seen in December 2022, London home values rose by 3.3% between January 2019 and January 2020.
According to the Office of National Statistics data, London had the lowest annual price increase of any area in England in the 12 months ending in January 2023. (ONS).
The typical house cost in the city increased by 3.2% year-over-year in January to £534,000. This makes London’s housing market the most costly in the UK.
Forecasters predict that London values will decline by five to ten percent this year as the property market and mortgage debtors adapt to the effect of the cost of living crisis and higher interest rates.
In the year leading up to January 2023, home values rose by 10% in the North East, making it the area with the most outstanding performance. Regarding regional averages, the North East’s median home price of £163,000 is the lowest.
House price inflation in the UK has eased to 6.3% annually. With an increase of £17,000 since January 2022, the average house price in the United Kingdom is now £290,000.
Demand and supply have been robust this year, and sales quantities will ultimately catch up against an economic background proving better than anticipated. This follows a period of essentially shutting off in the fourth quarter of 2022.
Rising prices in London
Meanwhile, London’s private renting market saw year-over-year growth of 4.6% through February 2023, up from 4.3% through January.
This is the highest yearly percentage increase in London since the beginning of 2013.
In the 12 months showing up to February 2023, rental rates across the UK rose by 4.7%, the most significant rise since similar records started in January 2016.
“Annual house price inflation, measured using final transaction prices, slowed again in January, consistent across all nations and regions,” said Aimee North, director of ONS housing market statistics.
“UK renting costs rose further, posting their fastest annual increase since records started in 2016.
The yearly percentage rise in London prices was the greatest over a decade, demonstrating the continued upward trend.
What’s to come?
In the year leading up to January 2023, the typical home price in Scotland rose by 1%. In January of 2023, the regular home price in Scotland was £185,000.
Inflation measured over 12 months ending in April 2022 for Scotland’s housing market slowed from its recent high of 13.8%.
In the year leading up to January 2023, the average home price in Wales rose by 5.8 percent. In January of 2023, the typical home price in Wales was £217,000.
“UK renting costs rose further, posting their fastest annual increase since records started in 2016.
The yearly percentage rise in London prices was the greatest over a decade, demonstrating the continued upward trend.
“While market conditions are more challenging, as we head into spring and what is traditionally a busier time of the market, properties must be priced correctly to achieve a successful outcome,” said Jason Tebb, chief executive of property discovery website OnTheMarket.com.
