UK house prices surge by 7.9% in the year to January 2016, up from 6.7% in the year to December 2015.
The average price of property coming up for sale has broken through the £300,000 mark for the first time this month.
In the South West, the average price stands at £292,251 - an annual increase of 6.8%.
Today's asking prices are now more than 50% higher than they were ten years ago, which highlights the growing affordability problem facing first-time buyers and trader-uppers.
Despite the recession, which saw several years of falling or stagnant property prices, the strength of the recovery is demonstrated by today's £303,190 average asking price, which is £100,000 higher than the £200,980 of March 2006.
By contrast, average wage growth of 22% over the past decade has failed to keep pace with CPI inflation of 26.8%, which highlights the issues of raising a deposit and affording a mortgage.
Main findings
UK house prices increased by 7.9% in the year to January 2016, up from 6.7% in the year to December 2015.
House price annual inflation was 8.6% in England, -0.3% in Wales, 0.1% in Scotland and 0.8% in Northern Ireland.
Annual house price increases in England were driven by an annual increase in the South East (11.7%), London (10.8%) and the East (9.8%).
Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to January 2016.
On a seasonally adjusted basis, average house prices increased by 0.9% between December 2015 and January 2016.
In January 2016, prices paid by first-time buyers were 7.7% higher on average than in January 2015.
For owner-occupiers (existing owners), prices increased by 8.0% for the same period.
UK average mix-adjusted house price in January 2016 was £292,000.
2.About this statistical bulletin
The Office for National Statistics (ONS) House Price Index (HPI), previously published by the Department for Communities and Local Government (DCLG), is a monthly release that publishes figures for mix-adjusted average house prices and house price indices for the UK, its component countries and regions.
The index is calculated using mortgage financed transactions that are collected via the regulated mortgage survey by the Council of Mortgage Lenders. These cover the majority of mortgage lenders in the UK. The HPI complements other measures of inflation published by us such as the consumer price indices, the producer price indices and the services producer price indices.
This statistical bulletin provides comprehensive information on the change in house prices on a monthly and annual basis. It also includes analysis by country, region, type of buyer (first-time buyers and former owner-occupiers) and type of dwelling (new dwelling or pre-owned dwelling). Historical series for all accompanying tables that transferred from DCLG are also available in the data section of this release.
The figures published in this release are not seasonally adjusted unless otherwise stated.
3.House price index UK summary
UK average house prices increased by 7.9% over the year to January 2016, up from 6.7% in the year to December 2015 (Figure 1). The average UK mix-adjusted house price in January 2016 was £292,000
.
Figure 1: Annual house price rates of change, UK all dwellings from January 2004 to January 2016
In January 2016, the UK mix-adjusted house price index increased by 1.4% on December 2015, to a record level of 223.9 (Figure 2). The UK index is 20.7% higher than the pre-economic downturn peak of 185.5 in January 2008.
Figure 2: Index values, UK all dwellings from January 2004 to January 2016
Index values February 2002=100
On a seasonally adjusted basis, average house prices increased by 0.9% between December 2015 and January 2016, compared with a decrease of 0.3% in average prices during the same period a year earlier
Table A: house price index - summary of UK all dwellings, January 2016
House price index: UK all dwellings | |||||||||||
Index | Percentage 12 month change | Index | Percentage monthly change | £ | |||||||
NSA | NSA | SA | SA | NSA | |||||||
2013 | Sep | 185.0 | 3.8 | 183.7 | 0.3 | 245,130 | |||||
Oct | 186.4 | 5.5 | 186.6 | 1.7 | 246,963 | ||||||
Nov | 187.2 | 5.4 | 187.7 | 0.6 | 248,083 | ||||||
Dec | 188.5 | 5.5 | 189.6 | 0.9 | 249,792 | ||||||
2014 | Jan | 191.3 | 6.8 | 191.1 | 1.0 | 251,935 | |||||
Feb | 192.2 | 9.2 | 194.8 | 1.8 | 253,099 | ||||||
Mar | 191.4 | 8.0 | 193.6 | -0.8 | 252,019 | ||||||
Apr | 197.5 | 9.9 | 198.0 | 2.3 | 260,033 | ||||||
May | 198.9 | 10.4 | 199.6 | 0.8 | 261,935 | ||||||
Jun | 201.2 | 10.2 | 200.3 | 0.3 | 264,889 | ||||||
Jul | 206.2 | 11.5 | 203.2 | 1.2 | 271,568 | ||||||
Aug | 207.7 | 11.7 | 204.7 | 0.7 | 273,552 | ||||||
Sep | 207.3 | 12.1 | 205.5 | 0.4 | 272,952 | ||||||
Oct | 205.8 | 10.4 | 205.7 | 0.1 | 271,014 | ||||||
Nov | 205.7 | 9.9 | 206.0 | 0.1 | 270,901 | ||||||
Dec | 206.9 | 9.8 | 207.7 | 0.8 | 272,468 | ||||||
2015 | Jan | 207.4 | 8.4 | 207.3 | R | -0.3 | R | 270,057 | |||
Feb | 206.5 | 7.4 | 209.0 | R | 0.8 | R | 268,830 | ||||
Mar | 209.7 | 9.6 | 211.9 | R | 1.4 | R | 273,035 | ||||
Apr | 208.6 | 5.6 | 209.2 | R | -1.3 | R | 271,626 | ||||
May | 210.0 | 5.6 | 211.0 | R | 0.9 | R | 273,503 | ||||
Jun | 212.6 | 5.7 | 212.4 | R | 0.6 | R | 276,864 | ||||
Jul | 217.0 | 5.2 | 214.3 | R | 0.9 | R | 282,526 | ||||
Aug | 219.2 | 5.5 | 216.3 | R | 1.0 | R | 285,431 | ||||
Sep | 219.8 | 6.1 | 218.2 | R | 0.9 | R | 286,261 | ||||
Oct | 219.8 | 6.8 | 219.7 | R | 0.7 | R | 286,260 | ||||
Nov | 221.6 | 7.7 | 221.9 | R | 1.0 | R | 288,517 | ||||
Dec | 220.8 | 6.7 | 221.9 | R | 0.0 | R | 287,560 | ||||
2016 | Jan | 223.9 | 7.9 | 223.8 | 0.9 | 291,504 | |||||
Source - Regulated Mortgage Survey |
1. Average house prices are not comparable between years as they reflect a different mix of houses being transacted. Indices have been chain linked so they are comparable year-on-year. For more information please see the re-weighting section in the background notes. | |||||||||||
2. NSA: Not seasonally adjusted | |||||||||||
3. SA: Seasonally adjusted | |||||||||||
4. R: Data revised | |||||||||||
5. Index - February 2002 = 100
4.House price index by country
During the year to January 2016, average house prices increased by 8.6% in England (up from 7.3% in the year to December 2015), 0.1% in Scotland (up from -0.2%) and 0.8% in Northern Ireland (down from 1.5%). There was a 0.3% decrease in average house prices in Wales (down from a 1.0% increase in the year to December 2015).
The main movements for each country are:
5.House price index by region
The pace of annual house price growth was again varied across the 9 English regions in January 2016 (Figure 5). The largest annual increase was in the South East at 11.7% (up from 8.8% in the year to December 2015) followed by London (10.8% increase in the year to January 2016, up from 9.4% in the year to December 2015). The North East continues to have the lowest annual growth of the 9 regions, with prices increasing 0.9% in the year to January 2016 (unchanged from 0.9% in the year to December 2015).
Excluding London and the South East, UK house prices increased by 5.1% over the year to January 2016, up from 4.6% in the year to December 2015.
Figure 5: All dwellings annual house price rates of change: UK, country and regions12 month percentage change
UK
● 12 month percentage change : 7.9
UKEnglandWalesScotlandNorthern IrelandNorth EastNorth WestYorks & The HumberEast MidlandsWest MidlandsEastLondonSouth EastSouth West
-202468101214
Source: Office for National StatisticsNotes:
Download this chartImage .csv .xls
This month, average house prices in only 3 of the 9 English regions are at record levels (Figure 6). The North East is the only English region yet to surpass its pre-economic downturn peak (prices in the North East remain 3.7% below the peak of January 2008).
The main regional price index movements for January 2016 are:
Figure 6: Mix-adjusted house price index by selected regions from January 2004 to January 2016Index level (Feb 2002 = 100)
London
North East
Yorks and Humber
West Midlands
South East
East
2016 Jan2014 Jul2013 Jan2011 Jul2010 Jan2008 Jul2007 Jan2005 Jul2004 Jan
100150200250300
Source: Office for National StatisticsNotes:
Download this chartImage .csv .xls6.Average house prices in countries and regions
Average mix-adjusted house prices in January 2016 stood at a record high of £306,000 in England, £174,000 in Wales, £195,000 in Scotland and £153,000 in Northern Ireland (Figure 7).
In January 2016, London continued to be the English region with the highest average house price at a record high of £551,000 and the North East had the lowest average house price at £156,000. London, the South East and the East all had prices higher than the UK average price of £292,000.
Excluding London and the South East, the average UK mix-adjusted house price was £218,000.
Figure 7: Mix-adjusted average house price: UK, country and regionHouse prices for January 2016
UKEnglandWalesScotlandNorthern IrelandNorth EastNorth WestYorks & The HumberEast MidlandsWest MidlandsEastLondonSouth EastSouth West
0100,000200,000300,000400,000500,000600,000
Source: Office for National StatisticsNotes:
Download this chartImage .csv .xls7.House price index by type of buyer
The average price for properties bought by first-time buyers increased by 7.7% over the year to January 2016, up from an increase of 6.4% in the year to December 2015 (Figure 8). In January 2016, the average price paid for a house by a first-time buyer was £222,000.
The average price for properties bought by former owner-occupiers (existing owners) increased by 8.0% in the year to January 2016, up from an increase of 6.9% in the year to December 2015. In January 2016, the average price paid for a house by a former owner-occupier was £340,000.
Figure 8: UK annual house price rates of change by type of buyer, January 2004 to January 201612 month percentage change
First-time buyer UK
Former owner-occupier UK
2016 Jan2014 Jul2013 Jan2011 Jul2010 Jan2008 Jul2007 Jan2005 Jul2004 Jan
-20-100102030
Source: Office for National StatisticsNotes:
Download this chartImage .csv .xls8.House price index by new and pre-owned dwellings
During the year to January 2016, prices paid for new dwellings increased by 8.3% on average, compared with an increase of 7.0% in the year to December 2015 (Figure 9). The average UK house price for new dwellings in January 2016 was £282,000.
During the year to January 2016, prices paid for pre-owned dwellings increased by 7.9% on average, compared with an increase of 6.7% in the year to December 2015. The average UK house price for pre-owned dwellings in January 2016 was £292,000.
Figure 9: UK annual price rates of change by type of dwelling, January 2004 to January 201612 month percentage change
New dwellings UK
Pre-owned dwellings UK
2016 Jan2014 Jul2013 Jan2011 Jul2010 Jan2008 Jul2007 Jan2005 Jul2004 Jan
-20-1001020
Source: Office for National StatisticsNotes:
Download this chartImage .csv .xls9.Development of a single, official house price index - progress updates
The methodology for the new house price index (HPI) has now been finalised and is presented in the article Development of a single official house price index, published in February 2016. Details on the transition plan to move to the next phase of development can also be found in the February 2016 article.
For further information, please email: hpi@ons.gsi.gov.uk
Back to table of contents10.Introducing the new single Official House Price Index: user event
This user event follows the October 2014 consultation on the development of a single Official House Price Index and subsequent published responses to provide final details on the methodology being used in the development of the new, single official house price index (HPI). During this event, an historic time series for the new single Official HPI will be presented, comparing these new estimates with existing estimates of average house prices and house price growth. Scheduled to be first published in their entirety in June 2016, these new statistics will replace the existing indices published separately by ONS and Land Registry.
The single Official House Price Index user event will be held in London.
Date: Wednesday 30 March 2016
Venue: Harvey Goodwin Suite, Church House Westminster, Deans Yard, Westminster, SW1P 3NZ
Time: 11.00am to 1.00pm
Details:
Exact timings and content for the event are to be agreed; however, the event will cover the following topics and allow time for general discussion regarding the introduction of the new Official House Price Index and a question and answer session:
The event is free of charge although spaces are limited and will be allocated on a first come first served basis. To reserve your place, please email:hpi@ons.gsi.gov.uk with the following details for each attendee: Name, organisation (if applicable), contact details (email address and contact number).
Further Reading
Average British home price, tips over 300,000 pounds @onthemarketblogRunning Costs - Zoopla tool, Phil Spencer explains, Dan the Detective Zoopla new TV advert Shelter launch Great Home Debate ,Ellie Goulding shows her support on twitter social media UK current account deficit has partial defence against shock says BoE's Forbes propertyeye.net a new property , residential homes website, for sales and lettings ? Iain Duncan Smith resigns over planned disability benefit changes,indefensible changes UK interest rates remain balanced , though sterling hit by EU vote says BoE No Brexit for me, why I'm staying in a reformed EU and so should you Rio Ferdinand and housing minister Brandon Lewis launched a new scheme to build thousands of affordable homes across UK David and Samantha , morning after: how Brexit divorce gets messyPropTech ,WILL change ,the global economy “beyond recognition” Rics at MIPIM conference Starter Homes: Unlocking the Land Fund Brandon Lewis MP Video Bank of England Mark Carney Governor quizzed on the risks of Brexit ,Sir Jon Cunliffe Cyber Criminals Phishing Scam Email, targets rightmove property portal, inc other property sites Locally-Led Garden Cities , Villages Towns in the United Kingdom coca cola tango free fall on Osbornes sugar tax Good News for Airbnb Londoners - online Micro Entreprenuers AirBnb / online, Ebay Amazon Start Up, micro-entrepreneurs rent property income, internet ,homes #Budget2016 George Osborne ,Stamp Duty Surcharge ,Tax, Capital Gains Tax,Housebuilding UrPad Online new Hybrid online estate agent for Wales ,rolled out by Property Industry Experts,Caerphilly Facebook Founder Zuckerberg settles dispute with no pay out to property developer Voskerician new affordable housing hits record low in london data shows Days of Chaps payment numbered ,Central banks rival Bitcoin new RSCoin super currency what the VLOG ? London property developers, Hackney Dalston E8 Vibe illusion technology law - eddies from property portals boliga.dk and now zoopla.co.uk Online estate agents, expecting sales bonaza, as sellers shun costly high street rivals A Welsh developer of student accommodation ,plans March 2016 IPO + Wales tallest building Help to Buy: mortgage guarantee scheme, Quarterly Statistics, March 2016 number of high street estate agents going bust up 16% , online estate agents market share up dictated by consumer not industry NHBC NEW HOME STATISTICS ANNUAL REVIEW 2015,English Housing, Papworth Disability Trust ,Joseph Rowntree & Bungalows ! why Frank Whittle and the Saville row tailor have more in common with Warren Buffet FT first 'Rightmove maintains grip in battle of property portals @onthemarketblog Brick-And-Mortar Crumbling? Don't Believe It > Forbes > Leadership Foxtons high street estate agent facing landmark claim for £2million from group of 55 landlords Building a new deal for London: Final report of the London Housing Commission 'Kleptocracy tours' 35,000 London properties currently have unknown offshore owners. Pop-up housing could cut cost of London’s rental market & help UK housing Crisis Chinese hunt for property bargains in Manchester amongst others say Pinnacle Alliance Property Developer Property pain Investigation ,service charges increasing rapidly with 30 % of firms increasing fees UK's largest property developers accused of 'profiting' on the back of the housing crisis Private rental prices grew by 2.7% in England Rental prices increased in all the English regions over the year to January 2016, with rental prices increasing the most in London (3.9%). Property pain Investigation ,service charges increasing rapidly with 30 % of firms increasing fees Foxtons report 4% revenue increase to City, despite Prime Central London property experiencing a dead-cat bounce Property Partner successfully completes £15.9M ($22.4M) funding round Nested - Start Up , property online disruptor to quick sale homes ? Building a new deal for London: Final report of the London Housing Commission high street estate agency valuations – flattery will get you nowhere by @emoovceo Start me up: Why London needs open workspaces for creativity, innovation and growth Live inquiry application launch 14 th March say Land Registry Marketing Manager LA police testing knife found on OJ Simpson property - reports 'Kleptocracy tours' 35,000 London properties currently have unknown offshore owners UK's largest property developers accused of 'profiting' on the back of the housing crisis Pop Up Housing a solution not just for London but the UK estate regeneration statement GOV UK DCLG ,Lord Heseltine ,Brandon Lewis MP Digital Mortgage service: making improvements again & again Buy-to-let investors 'could face losses' Uber's property footprint unmatched among San Fran Bay Area ,Tech StartUps Guests staying with AirBnB for the super bowl top 15,000 Nobroker.com Homes, one step closer to making estate agent obsolete , new round of funding OnTheMarket overseas properties , Britons with holiday homes in France face paying extra 10% in tax if they sell the property following a Brexit Guests staying with AirBnB for the super bowl top 15,000 FT first 'Rightmove maintains grip in battle of property portals @onthemarketblog Morrisons Super Markets signs deal to sell food to Amazon online customers Amazon eyes up UK restaurant delivery market Booking.com Launches of Passion Search ,Don’t battle your passions, unleash them David Cameron calls EU referendum for June 23 2016 Official Statement @onthemarketblog zoopla.co.uk selects Birst's Cloud BI platform for data integration from all its brands and apps Good News UK mortgage approvals hit two-year high BoE IMF Statement: LUXEMBOURG: Concluding Statement of the 2016 Article IV Consultation Mission Spanish house prices 2015 see rise highest rise 2007 crash , stabilisation of housing market, idealista.com No Brexit for me, why I'm staying in a reformed EU and so should you Scotlands House prices rise and sales grow ros.gov.uk An analysis of recent trends in the Irish rental market 2015 in Review fourth quarter 2015: First-time buyers took out 87,100 loans to purchase homes. + house prices in UK GeoPhy Exodus-from-EU-may-spark-correction-in-the-rental-market.html 1st of March David Cameron St David's Day message "wonderful country and a great part of the United Kingdom" Amazon eyes up UK restaurant delivery market Bank of England's unease over market's rate view Carney & Shafik Morrisons Super Markets signs deal to sell food to Amazon online customers Brick-And-Mortar Crumbling? Don't Believe It > Forbes > Leadership Chinese authorities shut down microblogging accounts belonging to a real estate mogul Foxtons high street estate agent facing landmark claim for £2million from group of 55 landlords Brexit ,purplebricks.com investor, impacts on the property market overall and on aggregate consumption in the economy will be limited |
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