The latest government UK House Price Index shows that the average price of a property was £295,903 in August 2022.
The report also states house prices increased 13.6% year-on-year and 0.9% month-on-month.
Property industry reactions to latest house price data
Iain Crawford, CEO of Alliance Fund, comments: “Despite the government’s best efforts, we are yet to see house prices take a hit and the property market remains predictably resilient despite the turbulence of the wider economic landscape.
“However, although Jeremy Hunt has pulled an almost complete three sixty manoeuvre where tax cuts are concerned, the irresponsible management of the UK economy in recent weeks will understandably unsettle the nation’s homebuyers.
“Many are already facing a notable hike to the monthly cost of their mortgage and while the increasing cost of borrowing is now likely to plateau, we can expect to see some form of house price correction. That said, this will most probably come in the form of a reduction in the rate of growth rather than a downward spiral in values themselves.”
Marc von Grundherr, Director of Benham and Reeves, comments: “If history has taught us anything, it’s that it will take far more than a bumbling bunch of buffoons mismanaging the economy from Westminster to topple the UK property market.
“House prices continue to climb and this will remain the case as long as the buyer demand balance remains tipped firmly in favour of home sellers.
“Mortgage rates also remain fairly favourable at present and so we simply won’t see a house price dip while this remains the case. However, the increasing cost of borrowing may curb the enthusiasm of homebuyers when it comes to their ferocity during the negotiations stage and so sellers may no longer see their property achieve above and beyond their asking price expectations, as has largely been the case during the pandemic.”
James Forrester, Managing Director of Barrows and Forrester, comments: “While the UK government may be a laughing stock, the UK property market is far from it and continues to move forward at pace despite the chaos that has unfolded across the wider economy.
“A commitment to cutting stamp duty will certainly act as the cherry on the cake for many homebuyers, but it’s their continued ability to borrow in order to buy that will keep the cogs of the property market turning.
“As it stands, they remain more than able, with the majority of lenders still offering a great level of products at what remain favourable rates. With stability now returning to the gilt markets, we can expect the mortgage sector to level out after what has been a rough few weeks and this will ensure the market remains in good health over the coming months.”
Chris Hodgkinson, Managing Director of HBB Solutions, comments: “It’s not just the nation that is facing a tough few months ahead with potential energy blackouts, we expect to see the property market follow suit as a shambolic government performance leaves its mark where house price growth is concerned.
“While the market remains unfazed at present, it’s important to note that these figures are reported on a lag of a few months and there’s no doubt that the increasing cost of borrowing will have dampened buyer activity, which in turn will see house prices dip before the year is out.”