UK House Price Index Summary - July 2023

20th September 2023

The annual percentage change for average UK house prices was 0.6% in the 12 months to July 2023, compared with 1.9% in the 12 months to June 2023.

The average UK house price was £290,000 in July 2023, which is £2,000 higher than 12 months ago, but £2,000 below the recent peak in November 2022. Average house prices increased in the 12 months to July 2023 to £309,000 (0.6%) in England and £192,000 in Scotland (0.1%), while the average house price decreased in the 12 months to July 2023 to £216,000 in Wales (-0.1%). The average house price increased in the year to Q2 (Apr to Jun) 2023 to £174,000 in Northern Ireland (2.7%).

On a non-seasonally adjusted basis, average UK house prices increased by 0.5% between June 2023 and July 2023, compared with an increase of 1.9% during the same period 12 months ago.

Annual house price inflation was highest in the North East where prices increased by 2.7% in the 12 months to July 2023. The South West was the English region with the lowest annual inflation, where prices decreased by 1.0% in the 12 months to July 2023.

The Royal Institution of Chartered Surveyors' (RICS') July 2023 UK Residential Market Survey reported a sharp downturn in buyer demand following the latest escalation in mortgage interest rates. When viewed at the regional and country level, all parts of the UK display a firmly negative return for new buyer enquiries over the month.

The Bank of England's Agents summary of business conditions 2023 Q2 reported weaker demand and stronger supply than a year ago, bringing supply and demand closer to balance. This led to more stable prices relative to recent months.

HMRC's UK Property Transactions Statistics showed that in July 2023, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 86,510. This is 16.3% lower than 12 months ago (July 2022). Between June 2023 and July 2023, UK transactions increased by 0.8% on a seasonally adjusted basis.

The Bank of England's Money and Credit July 2023 release reported that mortgage approvals for house purchases, an indicator of future borrowing, decreased to 46,400 in July 2023, from 54,600 in June 2023.

Average house prices in the UK increased by 0.6% in the 12 months to July 2023, down from 1.9% in June 2023.

At the country level, the highest annual house price percentage change in the 12 months to July 2023 was recorded in England, where house prices increased by 0.6%.

Scotland saw house prices increase by 0.1% in the 12 months to July 2023.

Wales saw house prices decrease by 0.1% in the 12 months to July 2023.

Northern Ireland saw house prices increase by 2.7% over the 12 months to Quarter 2 (April to June) 2023.

Headline statistics for July 2023
The average price of a property in the UK was
£289,824

The annual price change for a property in the UK was
0.6%

The monthly price change for a property in the UK was
0.5%

The monthly index figure (January 2015 = 100) for the UK was
152.0