With the UK economy set to decline over the coming year, all eyes are on the UK housing market - a key barometer of the nation’s economic health.
Average house prices fell slightly in January, although they remain close to an all-time high recorded by the Office for National Statistics (ONS) in November. The ONS had previously said October prices were a record-high but figures for November have since been revised upwards.
The average rate of annual house price growth has also slid back from 9.3% in December to 6.3% in January. However, it should be noted that volatility in prices seen in late 2021, when the government’s stamp duty holiday came to an end, have influenced the annual figures.
Many experts, including lenders and estate agencies, predict a house price slowdown is on the way over the course of 2023. However, recent indications from Halifax and Rightmove suggest property prices are rebounding.
It comes in the wake of the financial turmoil caused by the Liz Truss mini budget in September 2022. With her inflationary policies forcing the Bank of England to accelerate its interest rate hikes, mortgage rates soared to highs not seen in more than a decade at the same time as the UK household budgets were being squeezed considerably by the broader cost of living crisis. Although mortgage costs have eased, they remain at their highest level in more than a decade.
Every month, the Office for National Statistics (ONS) publishes an analysis of UK house prices. It tends to lag two months behind the ones produced by Nationwide, Rightmove and Zoopla, but offers a more comprehensive view of what was happening in the housing market at a given moment in time.
So, what did this index show was happening in January 2023 (the latest month for which we have data) - and what’s been happening to house prices in your area? Below NationalWorld has prepared three tables showing you how prices have changed in each local authority area.
- The first allows you to see a breakdown of how property values have shifted over the past year.
- The second graph gives you an area-by-area picture of average prices for homes going back to January 2003.
- And the third shows typical values for different types of housing in your area stretching back to January 2018.
Which areas have seen house prices rise - and fall - by the most?
According to the ONS, the average UK house price was almost £290,000 in January 2023 - 6.3% (£17,000) higher than in the same month in 2021, but £3,000 below the £293,000 recorded in December 2022 and almost £5,000 lower than the all-time high of more than £294,500 seen in November 2022.
But the overall figures mask a widely varied picture at a local level. Some council areas recorded double-digit hikes to average property values year-on-year, while others saw values decline.
Homes in the Shetland Islands saw average prices soar 24.1% (£42,000) in the 12 months to January 2022. At the same time, several London boroughs saw big reversals, including City of Westminster (-14.8%), Kensington and Chelsea (-7.7%), and Islington (-4.1%). But prices in these areas still remain well above the UK average.
You can search for your local authority area in the table below to find out how prices have fared in your area over the last month and year. Can’t see the table? You can view it on the Flourish website here.
How have house prices changed where you live since 2003?
Property prices have generally been on the rise over the last two decades. But these growth arcs have varied depending on where the local authority is located in the UK.
And while some areas have never recovered from the 2008 financial crash, others have seen property prices boom.
In Derry City and Strabane - the cheapest area on average in Northern Ireland in which to buy a home - average property values almost doubled from £94,944 to £180,450 between January 2005 and September 2007. But they then fell 55% over the next five years to a low of £82,705, and have only recovered to £153,244 in the years since.
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But in Cambridge, which is one of the most expensive areas outside of London and the South East, average house prices reached a pre-crash peak of £283,241 in December 2007. After a £59,000 drop to a low of £224,469 in March 2009, the years since the last recession have seen prices soar 135% to £528,401.
The chart below will show you how property prices have changed over the last 20 years in your area. Can’t see the graph? You can view the chart on the Flourish website here.
How are prices holding up for different types of property?
There are major differences between how much certain types of property cost in different parts of the country. A typical first-time buyer’s (FTBs) home in Kensington and Chelsea (the most expensive local authority area for FTBs) is more than 10-times the average FTB property in East Ayrshire (the cheapest) at £1.1 million compared to £99,861.
Indeed, Scotland is likely to be the happiest hunting ground for first-timers, with 10 out of the 20 cheapest FTB local authority areas found north of the border. But say these first-time buyers wish to upsize to a semi-detached, they are more likely to find joy in the North of England, where 11 of the 20 cheapest local authority areas are found.
The chart below shows prices for different types of property in your area over the last five years. Can’t see the chart? You can view the graph on the Flourish website here.