When it comes to buying or selling a house, the most important factor is cost. With rising interest and mortgage rates, house prices seem to be constantly in the news, and it’s not just the time of year that can have an effect on your house price. Regions, property type, and the year can all add or subtract from your price total.
In this blog post, we will be looking at the average property price uk 2023, house price trends UK, and the difference regions can have on average uk house prices.
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- Are UK house prices unaffordable?
- What is the average house price in the UK in 2023?
- Which county in the UK has the highest house prices?
- Which UK county has lowest house prices?
- What is the lowest house prices in UK?
- Should I buy a house in 2023 or 2024 UK?
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Are UK house prices unaffordable?
House prices in the UK have been unaffordable for a long time. With news of rising house prices and interest ratings becoming the norm, it’s no wonder that the average property price UK can feel out of reach. Whilst the north East is long regarded as the most affordable region to purchase property in, houses are still on average 5.3 times the median household income in 2021. It’s no secret that the average house price in England has been an issue for a while but it has more recently become a problem across the rest of the UK.
A median-priced home in Wales became unaffordable to the typical household in 2004. In 2022, this figure stood at 6.4 times the median household income. Furthermore, in Scotland, a median-priced home became unaffordable in 2006 and in 2022 stood at 5.3 times income. Northern Ireland tells a similar story with houses becoming unaffordable in 2017 and reached 5.1 times income in 2021.
What is the average house price in the UK in 2023?
House prices can fluctuate not only month on month, but also depending on area. Where you live in the UK can have a big affect on exactly how much your property can sell for. According to the HM Land Registry UK House Price Index, the average house price in the UK last year was £291,560.
But how does this statistic compare to the average cost of a house per region across the UK?
The table below shows the average regional house prices in England according to the UK house price index, these are the average regional house prices in England:
|Region||Average price July 2023||Annual change % since July 2022||Monthly change % since June 2023|
|East of England||£352,723||0.2||0.4|
|Yorkshire and the Humber||£212,730||2.5||1.5|
Average price by property type in England
House prices are not just affected by the area you live in or the time of year that it is, you may also find that the type of property that you own can have an effect on your house price. Below is data collected from the HM Land Registry UK House Price Index on the difference in property type prices in the space of a year:
|Property type||July 2023||July 2022||Difference %|
Which county in the UK has the highest house prices?
Now we have looked at the average house price uk 2023, we can look into some of the counties in the UK with the highest UK house prices. Whether you are upsizing, downsizing, or simply fancy change, here are some of the areas in the UK with the highest house prices:
|County||Average House Price|
|City of London||£1,024,218|
*According to data from Rightmove
City of London
Top of our list of counties in the UK with the highest house prices should come as no surprise. The city of London is notorious for its high prices and is also the region with the highest house prices. With the average property price in London costing an eyewatering £1,024,218, it is no wonder that the city of London is the most expensive county.
The most popular property type sold in the city of London over the last year were flats, which fetched an average sale price of £1,005,207. Semi-detached properties cost an average of £2,850,000 and terraced properties sold for an average of £2,050,000.
Overall in the last year, sold house prices in the City of London were 2% up on the previous year and 18% down on the 2018 peak of £1,248,823.
Next up on our county list of high house prices is Greater London. Much like its cousin the City of London, it is no surprise to see Greater London on this list. With a prime location and excellent travel links in and around the city, Greater London saw an average house price of £697,212.
The most popular type of property sold in Greater London were flats, which had an average sale price of £538,488. Terraced properties in Greater London sold for an average price of £763,523 and semi-detached properties cost an average of £761,668.
Overall, the average sold prices in London were similar to the previous year but 8% up on the 2020 peak of £643,624.
In the middle of our county in the UK with the highest house prices is Surrey. Located in the South East of England, Surrey is home to many historical houses, zoos, theme parks, museums and more. With great access to London and beautiful landscapes, it’s no mystery as to why house prices are so high.
With an average house price of £626,518, houses in Surrey are a lot pricier than the nationwide average of £291,560. The most popular type of property sold in Surrey over the last year was flats, which sold on average for a price of £388,771. Terraced properties fetched an average of £633,355 and semi-detached properties cost £659,553 on average.
Overall, sold prices in Surrey were up 1% on the previous year and up 10% on the 2020 peak of £570,133.
Next on the list is the county of Hertfordshire. Located on the outskirts of Greater London, Hertfordshire is a great commuter town for those looking to escape the hustle and bustle that London can bring.
With an average house price of £533,784, Hertfordshire is slightly less expensive than its neighbours Greater London and the City Of London however it is still on the pricier side of house prices. The most popular type of property sold in Hertfordshire last year was terraced properties which sold for an average sale price of £448,940. Semi-detached Hertfordshire properties sold for an average of £560,129 and flats sold for an average of £294,174.
Overall sold prices in Hertfordshire over the last year were up 3% on the previous year and 12% up on the 2020 peak of £476,607.
Last on our list is the county of Buckinghamshire. Home to Milton Keynes, beautiful rolling countryside views and excellent travel links to the capital, it’s easy to see how Buckinghamshire made the list.
With an average home price of £500,843, Buckinghamshire may be at the bottom of our list, but it is certainly a pricier area to purchase in. The most popular type of property sold in Buckinghamshire last year were detached properties, which sold on average for a price of £816,534. Semi-detached properties cost an average of £453,080 and terraced properties sold for £377,283.
Overall Buckinghamshire properties over the last year were 3% higher than the previous year and were 12% higher than the 2020 peak of £448,238.
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Which UK county has lowest house prices?
If you are a first-time buyer looking to get their foot on the property ladder, or you are a home buyer looking for a change of scenery, then you may be interested in the UK counties that have the lowest house prices. Below are the counties in the UK with the lowest average property price UK:
|County||Average House Price|
|Tyne and Wear||£193,470|
*According to data from Rightmove
The county with the lowest house prices in 2023 is County Durham, located in the North East. It is no surprise to see County Durham at the top of the list due to its location in the North East Region, which is also the region with the lowest house prices. With close proximity to Newcastle and Durham, as well as excellent travel links up and down the country, Durham is a great choice for those looking to get a foot on the property ladder.
With an average house price of £164,945, County Durham is an affordable choice for all home buyers, whether they are first-time buyers or those looking for their next property. The majority of house sales in County Durham last year were terraced properties, which fetched an average sale price of £110,198. Semi-detached properties sold for an average price of £156,356, and detached properties selling for an average of £299,292.
Overall in County Durham last year sold prices were in line with the previous year and 3% higher than the 2020 peak of £159,439.
Tyne and Wear
Next up on our list of UK counties with the lowest house prices is Tyne and Wear. Also located in the North East region, Tyne and Wear is another budget-friendly county to purchase property. With reasonable house prices and excellent travel links to Edinburgh, London, and all around the country, it’s easy to see why Tyne and Wear is a popular choice.
Tyne and Wear saw an average property price of £193,470 in 2023, making Tyne and Wear an ideal county for those looking to get started on the property ladder. The most popular type of property sold in Tyne and Wear last year were terraced properties which sold for an average price of £163,151, followed by semi-detached properties which sold for an average price of £199,071. Flats in GTyne and Wear sold for an average of £119,846.
Overall the sold prices in Tyne and Wear from the last year were in line with the previous year and were 6% up on the 2020 peak of £1882,700.
In the middle of our list of counties with the lowest house prices is Northumberland. With wonderful countryside walks, national trust spots a plenty and a fantastic coastline, Northumbria is a firm favourite with those searching for lower house prices.
With an average house price of £205,304, Northumberland is a hotspot for reasonable property prices. The most popular property types sold in Northumberland during the last year were terraced properties which sold for an average of £161,130. Semi-detached properties sold for an average of £195,097 with detached properties fetching £367,060.
All in all, property prices in Northumberland over the last year were similar to the previous year and were 6% up on the 2020 peak of £193,579.
Another county with low house prices in 2023 is West Yorkshire, home to the wonderful city of Leeds. From the royal sculpture park to the royal armouries, there is always something to do in West Yorkshire.
With an average house price of £205,705 in 2023, West Yorkshire is a popular choice with home buyers of all ages. The majority of house sales last year in West Yorkshire were terraced properties which fetched an average price of £162,608. Semi-detached properties sold for an average price of £221,463, and detached properties sold for an average of £405,891.
Overall in the last year sold prices in West Yorkshire were 2% up on the previous year and a further 11% up on the 2020 peak of £201,162.
The last county on our list is Lancashire. Located in the North West, the average house price over the last year was £213,078. With a roster of wonderful beaches, including Blackpool, and beautiful country walks, there’s plenty to love about Lancashire. With affordable house prices, it’s easy to see why it is a popular choice with first-time buyers.
The most popular type of property sold last year in Lancashire were terraced properties, which sold for an average price of £149,264. Semi-detached Lancashire properties fetched an average of £215,214 and detached properties sold for an average price of £381,661.
Overall, the sold prices in Lancashire were up 2% on the previous year and had risen 12% on the 2020 peak of £189,604.
What is the lowest house prices in UK?
As we have already mentioned, in 2022, the average price for a property was £291,560. In England, this figure was £310,000, in Wales £217,000 and £185,000 in Scotland. But if you are looking for areas where this price is cheaper then look no further. Whilst North East may be the area with the lowest regional house prices, the lowest house prices in the UK can be found all over the country. Below we take a look at some of the postcodes where the lowest property prices can be found:
- Middlesbrough, TS1, £54,978
- Bradford,BD1, £58,673
- Sunderland, SR1, £65,478
- Grimsby,DN31, £71,105
- Shildon,DL4, £73,637
- Middlesbrough,TS3, £80,958
- Peterlee, SR8 £85,274
- Stanley,DH9, £91,391
- Lancashire,BB11, £91,516
- Liverpool,L20, £91,793
- Keighley,BD21, £91,833
- Birkenhead,CH41, £91,885
- Kingston upon Hull,HU9, £92,755
- Sunderland,SR5, £93,222
- Ferryhill, DL17, £95,380
- Blackpool,FY1, £95,526
- Hull,HU3, £97,043
- Grimsby,DN32, £97,652
- Liverpool,L5, £97,744
- Seaton Carew,TS25, £100,60
*According to data from Moveiq
Should I buy a house in 2023 or 2024 UK?
Whether or not you should purchase a house now or in 2024 is a decision that only you can make. First of all, you should look at how desperately you want to own a house. Interest rates have been falling slightly since the start of August and will hopefully stabilise. This is due to the Bank of England increasing its base rate 14 times in a row, meaning that monthly mortgage payments have become more expensive. Because of this, some would-be homeowners may wish to delay their house purchase until 2024.
However, there is no guarantee that interest levels will fall next year. The housing market is unpredictable, and there’s no way of telling exactly what interest rates will be like next year, so if you are in a position to buy, you may wish to do so sooner rather than later. Whilst rising interest rates are often bad news, it could mean that there are fewer home buyers enquiring, reducing the demand in the market and leading to lower house prices.
Rising rental prices also play a factor in whether now is a good time to purchase a property. With the increase, you may find that you are now spending more on rent than you would on mortgage payments. This will mean that you may end up saving yourself money by purchasing now and building equity.
This covers everything you need to know about average house price by region UK. If you have any questions, queries, or insight into the matter, please feel free to get in touch!