The latest house price data published by HM Land Registry (HMLR) for January 2022 shows that average house prices in the UK increased by 9.6% in the year to January 2022, down from 10% in December 2021. The average property in the UK was valued at £273,762 in January.
On a non-seasonally adjusted basis, average house prices in the UK increased by 0.4% between December 2021 and January 2022, down from an increase of 0.7% during the same period a year earlier (December 2020 and January 2021).
The regional data for England indicates that the East Midlands experienced the greatest increase in its average property value over the last 12 months with a movement of 11.6%, the East Midlands also experienced the greatest monthly growth with an increase of 1.8%.
London saw the lowest annual price growth with an increase of 2.2% and also saw the most significant monthly price fall with a movement of -1.8%. The average property value in London was recorded at £510,102 in January.
House price growth was strongest in Wales where prices increased by 13.9% in the year to January 2022. Wales shows, on average, house prices have risen by 1.3% since December 2021. An annual price rise of 13.9% takes the average property value to £206,251.
The UK Property Transactions Statistics showed that in January 2022, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 106,990. This is 10.6% lower than a year ago (January 2021). Between December 2021 and January 2022, UK transactions increased by 5.1% on a seasonally adjusted basis, following a large increase in the month prior.
HMLR has advised that due to ongoing effect of the Covid-19 pandemic this round of statistics release is “not as complete as it could be”. While the data is accurate, HMLR stated that the release “may be subject to increased revisions as we add more data over the coming months”.
Andy Sommerville, Director at Search Acumen, says:
“Historically, January is a slower month for house price growth as people pause and take stock of their finances at the start of a New Year. However, this year, the market continued to defy expectations and house prices climbed 9.6% in the first month of the year.
The increase in property prices across the UK can be attributed to the gap in demand and levels of stock in the market. The solid momentum in prices has put homeowners looking to move in a strong position to sell for a premium, while first time buyers will have to lower expectations, or continue saving in the current market.
As we look ahead to the Spring, we can expect to see a wave of newly listed properties to the market, which could contribute to the easing of house price growth. Added to this will be the further pinch to household spending, with energy bills set to rise from April coupled with elevated fuel and food costs. We can expect to see a consequent dampening of activity that will subdue the rise in house prices that we are currently experiencing.
For now, demand for property continues to remain high, with the pandemic having made a lasting impact on the way people want to live and work. To best meet the demand for properties as well as meet consumers’ desire to receive information upfront and without delay, we strongly urge property professionals to deploy the technological tools at their disposal to keep up with the pace of change.
Digital solutions have developed at an unprecedented rate, and there is a growing expectation that they are deployed at all stages of the property transaction process. So much so that Land Registry has requested the digital submission of AP1 applications by November, which is just one example of their commitment to enshrining further digital ways of working in the industry. The chance to ‘opt out’ of the digital future of the property market are fading fast and will ultimately create a more efficient system for all.”
Sarah Coles, senior personal finance analyst, Hargreaves Lansdown commented:
“The lag in house price data, and the fact that in March we’re seeing figures for sales agreed some time between October and December last year, means we won’t see the impact of rising prices and rates take effect for a few months yet. In fact, we know from other indices that house prices powered ahead in February, and we know from HMRC figures that we saw a flurry of sales completing in February too, so it’s going to appear on the surface that we’re taking rate rises on the chin. It’s not until later in the summer that we’ll see the impact of houses rising further out of people’s reach.”
