Annual price growth in London’s outer boroughs is the highest, while growth in prime inner-city areas is slowing or declining. According to new figures from the Office of National Statistics, it has the slowest annual price growth of any region in England, with average sold prices increasing by 6.3 percent in the year to November 2022. (ONS).
However, with average sold prices of £542,300, London remains the most expensive region in the UK to buy a home. Outer London boroughs saw the highest annual growth in house prices in the year to November, with Tower Hamlets, Brent, Hackney, and Hillingdon all seeing yearly increases of more than 11.5%.
The City of London is an exception, with a growth of 18.5% and a new average price of £935,700. The data is likely skewed due to the borough’s small area of just over one square mile.
The most significant declines in annual growth were seen in London’s most expensive areas, such as Kensington and Chelsea (-6.3%) and the City of Westminster (-5.1 percent). Despite annual growth of 10.6 percent, Barking and Dagenham in east London remains London’s cheapest borough, with average sold prices of £359,800.
Present Scenario
Today’s figures are based on completed property transactions and thus sold prices for the year ending November 2022. As a result, today’s figures reflect the fallout from the disastrous mini-Budget and the quiet period preceding Christmas.
“Mortgage rates are edging down as the shock of the mini-Budget works it’s way through the system, but are still around 1.5 percentage points higher than last summer,” said Tom Bill, head of UK residential research at Knight Frank. A new normal for rates are gradually emerging, and we will get a better sense of how people react once they recalculate their budgets in the coming months. This decision-making process, rather than what occurred last year, will determine the housing market’s trajectory in 2023.”
“On the ground, since our return to work nearly three weeks ago, we have noticed the release of some pent-up demand now mortgage rates have begun to fall,” said Jeremy Leaf, a north London estate agent.
“Inflation falling for the second month in a row to 10.5% will help relieve some pressure on the Bank of England,” said Mark Harris, chief executive of mortgage broker SPF Private Clients. “However, another increase in base rate next month is still on the cards. For homeowners looking to budget more effectively, using a landscaping cost calculator can provide valuable insights into managing their expens”
House Prices in the United Kingdom
According to the ONS, the average UK house price fell from a previous record high in November. Property prices increased by 10.3 percent in the year to November 2022, slowing from 12.4% in October 2022.
In November, the average UK house price was £295,000, a £1,000 decrease from the previous month’s record high of £296,000. The North West of England had the highest annual house price inflation in November, with a 13.5% increase.
Average house prices in England increased by 10.9 percent year on year to £315,000, £220,000 in Wales (10.7 percent), £191,000 in Scotland (5.5 percent), and £176,000 in Northern Ireland (10.7 percent).
