Where are the biggest rises in house prices?

But behind that figure there’s quite a lot of variety by region, and UK House Price Index data shows that while some areas saw prices rise by close to 20%, other places saw values fall. So where are the hotspots?

First off, they’re not in London. Though prices in the capital remain on the whole significantly stronger than elsewhere in the country, the average London property increased in value by just 6.7% in the year to October 2022. In Camden, prices went up by just 3.6%, while Kensington and Chelsea actually saw values fall by -7.1%, bringing the borough’s average property price down to £1.355m. Still, London’s average house prices remain the most expensive of any region in the UK, with an average price of £542,000 in October 2022. Compare this to Stroud in Gloucestershire, where the average property sale went up by 19.2% over the course of 2022, reaching 366,039, Folkestone, where prices rose by 16.8% to an average of £325,702, or Maidstone, where a rise of 17.1% took the average home to £368,000.

Other hotspots include Milton Keynes (up 17.4% to £336,941), North Devon (up 17.4% to £342,756) and North West Leicestershire up 18.3% to £284,376). In the North East, average house prices remain lower than anywhere else in England, but average house price inflation is higher than any other region. Here, average prices increased by 17.3% in the year to October 2022 – and the average property transaction is now at £168,000.

Predictions for the coming months vary widely. While small monthly decreases in the value of the UK’s average home were recorded in November and December 2022, values still remain high year on-year. And while some predictions are forecasting an 8% fall in house prices over the next 12 months, it’s important to remember that even that would only see prices return to where they were in April 2021, still leaving them significantly higher than pre-pandemic. On the other hand, Rightmove is reporting a rise in asking prices in January 2023, citing that the average asking price by new sellers has risen by 0.9% to £362,438 this month, which is the biggest January increase in three years. 

So the picture is unclear. While UK house prices remain strong, mortgage rates are higher than they were last year and some predictions suggest that property prices could ease to compensate for higher mortgage rates. However, mortgage rates are now significantly lower than they were in December 2022, and they could continue to decrease in the coming months. In all, property values remain high across the country, and competition for desirable homes remains high, particularly in those areas with the most growth.