16 November 2022
According to today’s House Price Index by the Office of National Statistics, UK average house prices increased by nearly 10% over the year to September 2022 – a slight decrease on 13% in August 2022. The average UK house price is now £295,000 in September 2022, the same as last month.
Stacy Eden partner at leading audit, tax and consulting firm RSM UK, comments: ‘Property prices have, as expected, come to a halt with the cost-of-living crisis, inflation and significant rises in interest rates. We would expect to see house prices going forward to start a gentle downward trend but underpinned by the chronic lack of supply.
‘It is noticeable that on a yearly basis London house price growth was significantly below the national growth rate at about 7% highlighting the key effects of the pandemic of buyers wanting more space and more importantly the recession hitting house prices where they are even more unaffordable.’
He added: ‘First-time buyers are really feeling the squeeze despite house prices rises coming to an end. The house price to earnings ratio is still at an unsustainable level which is making property unaffordable particularly with high rises in interest rates and of course rental growth which is impacting first time buyers save for a deposit.
‘As the government looks for supply side reforms to kick start the UK economy or at least reduce the impact of the recession, then resolving the supply and demand equation (through planning reforms) seems to be an obvious place to start. We would also recommend reforming SDLT to encourage more liquidity in the market.’