By Legal Futures Associate Search Acumen
Latest ONS HPI figures have been published this morning and show:
- Remaining largely unchanged, on a seasonally adjusted basis, the average UK house price increased by 0.1% between October and November 2022, following an increase of 0.5% in the previous month.
- On a non-seasonally adjusted basis, the average UK house price decreased by 0.3% between October and November 2022.
- The average UK house price was £295,000 in November 2022, which is £28,000 higher than this time last year, but down slightly from the previous month’s record high of £296,000.
- The average UK house price annual percentage change was 10.3% in the year to November 2022, down from 12.4% in the year to October 2022.
Andy Sommerville, Director at Search Acumen, the property data and insight provider, comments:
“As we shake off our January blues, it comes as no surprise to see that house price data this month indicates a flatline in growth reflective of current macro-economic conditions. As one of the coldest months of the year when people will be particularly concerned with rising energy prices, and with inflation still hitting families hard, we expect this tightening trajectory to continue.
“With house price values in a likely slow but steady decline as we settle into a recessionary period, this raises the likelihood of uncertain transactions with more down valuations, gazundering and buyers pulling out of deals altogether. The latest data from Land Registry shows that completion times are ranging from eight minutes to over eight months. This, combined with the upcoming strike by HMLR planned for February, means delays are not only prevalent but set to continue. We know over a third of property sales fell through last year, peaking at over 52% of all transactions in November. To avoid a house of cards in 2023, it is more important than ever that the industry engages with all digital tools at their disposal for a fast and efficient transaction.
“As buyers try to beat the tide on increasing interest rates, property solicitors will be feeling the pressure more than ever. Alongside increasingly complex transactions, longer chains, and greater risks, how each firm fares in the months ahead will be defined by how well it learns the lessons of the pandemic and continues to invest in innovation as a tool for efficiency and cost saving in challenging times. Land Registry is looking to collect 70% of applications via automation in the next three years – at the moment this number sits at 29%. It is clear that tech plays a vital role as part of the solution to keep the market moving.”
