North-west house prices up 4.8% on 2022

House prices in the North-west rose 4.8% in the 12 months to April 2023, according to the latest UK House Price Index published by the Office of National Statistics (ONS).

The region has seen the second fastest house price growth in the UK, behind only the North-east (5.5% growth in the same period) which is also the English region with the lowest average house prices at £159,900. The average house price in the North-west now stands at £212,814, below the national average property value of £305,731.

Month-on-month, house prices rose 0.8% in the North-west, with the South-east and East of England both recording a decline in house prices between March and April 2023. London saw the fastest month-on-month increase of 2.1%, despite the slowest annual growth rate.

The increase in house prices comes despite growing uncertainty in the property market as mortgage rates continue rise. The Bank of England is expected to further increase its base interest rates when its Monetary Policy Committee meets tomorrow (22nd June) as it aims to take action on continued high inflation.

The ONS has also today shared the latest Consumer Price Index for May 2023, which stands at 8.7%, the same rate of price rises as recorded last month. While the 12-month rate of inflation stood unchanged on April’s figure, the ONS also recorded prices were on average 0.7% higher than in the previous month. Food and drink prices remained the largest driver of high inflation, with prices up 18.4% on May last year, while costs of motor fuels continued to fall back down from last year’s highs, driven up by the Russian invasion of Ukraine.

The impact of rising costs for homeowners for higher mortgage rates is also beginning to show up in the ONS’s inflation statistics. While the CPI was unchanged from April to May, the ONS’s CPIH, including owner occupiers’ housing costs and sometimes referred to as ‘core inflation’, saw a slight increase to 7.9%, as more homeowners move off of fixed-term interest deals agreed before interest rates began to rise last year.