House prices hit highest level in nearly 20 years

The ONS revealed the average price of a house has risen by £39,000 in the last year to £292,000, the fastest rate of acceleration since 2003.

As for the monthly changes, average UK house prices increased by £6,000 between June and July – this is compared with a fall of £13,000 between the same months last year. 

Overall, average house prices increased over the year in England to £312,000, in Wales to £220,000, in Scotland to £193,000 and in Northern Ireland to £169,000.  

These increases come despite the rising interest rates on mortgages, and the dire economic forecasts for the coming winter, with the cost-of-living crisis set to hit pockets of UK households even further. 

Rental costs, meanwhile, have risen sharply after a period of stagnation during the pandemic, with the ONS reporting that prices have risen by 3.4% from August 2021 to August 2022. 

Benham and Reeves director Marc von Grundherr said: “The extreme resilience demonstrated by the property market so far this year continues to shine through the doom and gloom of the wider economic landscape, with the latest figures revealing yet another remarkable rate of growth both on a monthly and annual basis.” 

James Forrester, managing director of Barrows and Forrester, added: “With the nation in mourning over the death of our longest reigning monarch, it’s fair to say that an increase in bricks and mortar value is probably the last thing on the mind of the nation’s homeowners at present.”