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UK Housing Market Report Overview: July 2023

Published by Chirag
Published Date: October 4, 2023

The UK Housing Market Report for July 2023 provides a comprehensive overview of the current state of the United Kingdom's property market. In this report, we delve into key statistics, economic insights, and price movements, offering a snapshot of the housing market's performance during this period.

From changes in average property prices to sales volumes and economic influences, this report offers valuable information for both individuals within the real estate industry and those interested in understanding the dynamics of the UK housing market.

1. Key Insights for July 2023

  • The Mean Property Price in the United Kingdom in July 2023 stood at £289,824.
  • The Yearly Property Price Change in the UK registered at 0.6%.
  • Monthly Property Prices exhibited a 0.5% increase.
  • The Monthly Index Figure for the UK, with January 2015 as the base (100), reached 152.0.

Please note that estimates for recent months are provisional and subject to updates as more data is integrated into the index.

2. Economic Assessment

Annual house price growth in the UK was 0.6% for the 12 months ending in July 2023, down from 1.9% in June 2023.

The average house price in the UK in July 2023 was £290,000, marking a £2,000 increase from the previous year but £2,000 lower than the peak observed in November 2022.

UK Housing Market

In the year leading to July 2023, average house prices in England rose to £309,000 (0.6%), while in Scotland, they reached £192,000 (0.1%). In contrast, average house prices in Wales decreased to £216,000 (-0.1%). Northern Ireland experienced a notable increase to £174,000 (2.7%) in the year ending Q2 (April to June) 2023.

On a non-seasonally adjusted basis, average UK house prices grew by 0.5% from June 2023 to July 2023, in contrast to a 1.9% increase during the same period one year ago.

The North East saw the highest annual house price inflation at 2.7% in the 12 months to July 2023, while the South West exhibited the lowest annual inflation in England, with prices decreasing by 1.0% during the same period.

3. Price Movements

Over the past 5 years, UK has witnessed a great shift in its annual price changes. The table below highlights the shift in UK during this time.

Annual price change

Image Source: gov.uk

Average house prices in the UK showed a 0.6% increase in the 12 months leading to July 2023, compared to a 1.9% rise in June 2023.

At the national level, England experienced the highest annual house price change, with a 0.6% increase in the 12 months to July 2023.

Scotland observed a 0.1% increase in house prices during the same period, while Wales saw a 0.1% decrease.

Northern Ireland recorded a substantial increase of 2.7% in house prices over the 12 months ending in Quarter 2 (April to June) 2023.

Country and government office region

Price

Monthly Change

Annual Change

England

£308,633

0.4%

0.6%

Northern Ireland (Quarter 2 - 2023)

£173,898

1.4%

2.7%

Scotland

£191,870

1.1%

0.1%

Wales

£215,632

1.1%

-0.1%

East Midlands

£249,484

-0.5%

1.9%

East of England

£352,723

0.4%

0.2%

London

£534,265

1.1%

-0.8%

North East

£163,480

0.5%

2.7%

North West

£215,648

0.3%

1.0%

South East

£394,096

0.5%

0.4%

South West

£323,713

-0.2%

-1.0%

West Midlands Region

£251,313

0.2%

0.4%

Yorkshire and The Humber

£212,730

1.5%

2.5%

monthly price changes

Image Source: gov.uk

On a non-seasonally adjusted basis, average house prices in the UK increased by 0.5% between June 2023 and July 2023, a decrease from the 1.9% increase observed during the same period one year ago (June 2022 and July 2022). Seasonally adjusted, average house prices in the UK decreased by 0.5% between June 2023 and July 2023.

4. Sales Volumes

The time lag between property sale and registration varies, typically ranging from 2 weeks to 2 months or longer. Volume figures for the most recent 2 months are not yet at a reliable level for reporting and are excluded from this report.

Sales volume data is available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions involving new registers, such as new builds, are more complex and require additional processing time.

A comparison of provisional UK HPI volume estimates for May 2022 and May 2023 shows a 19.4% decrease in volume transactions in England, a 9.5% decrease in Scotland, and a 17.9% decrease in Wales. Northern Ireland's UK HPI volume transactions decreased by 17.6% in the year leading to Quarter 2 2023.

UK Price Index

Image source: gov.uk

UK Property Transaction Statistics published by HM Revenue & Customs (with differing coverage but more comprehensive for this period) report a 27.5% decrease in HMRC volume transactions in England, a 27.9% decrease in Wales, a 10.2% decrease in Scotland, and a 21.6% decrease in Northern Ireland in the 12 months leading to May 2023, on a non-seasonally adjusted basis.

Comparing provisional UK HPI volume estimates for May 2022 and May 2023, UK volume transactions decreased by 17.7%. UK Property Transaction Statistics published by HM Revenue & Customs (with differing coverage but more comprehensive for this period) report a 25.9% decrease in HMRC volume transactions for the UK in the 12 months leading to May 2023, on a non-seasonally adjusted basis.

5. Property Registration Status in the UK

Transactions involving the creation of new registers, such as new builds, require more processing time and are not included in the report due to unreliable volume data for the most recent 2 months.

Property Status

Average price May 2023

Monthly Change

Annual Change

New Building

£395,477

-0.3%

13.8%

Existing resold property

£278,175

0.5%

1.0%

6. Buyer Status in Great Britain

The status for first time buyers as well as former owner occupier is provided below. For Great Britain only, data on buyer status in Northern Ireland is not available.

Type of buyer

Average price July 2023

Monthly Change

Annual Change

First time buyer

£240,789

0.4%

0.2%

Former owner occupier

£340,098

0.8%

1.0%

7. Funding Status in Great Britain

For Great Britain only, data on funding status in Northern Ireland is not available.

Funding Status 

Average price July 2023

Monthly Change

Annual Change

Cash

£274,100

0.3%

0.3%

Mortgage

£302,564

0.6%

0.8%

Conclusion

In conclusion, the UK Housing Market in July 2023 exhibited a modest annual price increase of 0.6%, reflecting a notable shift from the previous month's figures. While regional variations persisted, with Northern Ireland experiencing substantial growth and some English regions facing challenges, overall stability marked the market.

Economic factors, such as mortgage interest rates, played a pivotal role in influencing buyer demand, as evidenced by reports from the Royal Institution of Chartered Surveyors and the Bank of England. As transaction volumes fluctuated, stakeholders closely monitored these changes, anticipating further developments in the ever-evolving landscape of the UK housing market. Stay tuned for future updates and analyses as we continue to track the trends and dynamics shaping the property market in the United Kingdom.

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