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House price growth slows while private rents rise at record pace
Across the UK, house prices increased 0.6% in the year to July 2023 (provisional estimate). This was down from the revised estimate of 1.9% in June 2023.
The average UK house price was £290,000 in July 2023 (provisional). This is £2,000 higher than the same month a year ago, but £2,000 less than the recent peak in November 2022.
House prices in England also increased by 0.6% in the 12 months to July 2023. Annual house price inflation was slower in Scotland, at 0.1%, while average house prices in Wales fell by 0.1% in the 12 months to July 2023.
Of the English regions, the North East saw the highest annual house price inflation in the 12 months to July 2023 (2.7%), although this was down from 5.7% in the year to June 2023. Average house prices in the North East remain the lowest of all English regions at £163,000.
The South West saw the lowest annual inflation of any English region, with prices decreasing by 1.0% in the year to July 2023. London was the only other region where prices decreased in the year to July 2023.
Private rental prices continued to grow at record high rates in all UK countries in the year to August 2023.
Overall, UK private rental prices increased 5.5% in the year to August 2023, up from 5.3% in the 12 months to July 2023. This is the largest annual percentage change since this UK data series began in January 2016.
Private rent prices rose 5.4% in England, 6.5% in Wales, and 6.0% in Scotland, in the 12 months to August 2023. These are the highest annual changes in rental prices since records began (January 2006 for England, January 2010 for Wales, and January 2012 for Scotland).
Private rental prices in London (which accounts for almost a third of UK rental expenditure) increased by 5.9% in the 12 months to August 2023, above the England average and its highest annual rate since the London data series began in January 2006.
Among adults in Great Britain paying rent or a mortgage, 42% said they were finding it very or somewhat difficult to afford these payments.
This is according to those asked between 6 and 17 September 2023 as part of our latest Public opinions and social trends bulletin.
This was 35% during a similar period last year (31 August to 11 September 2022).
Among those paying for rent or a mortgage, 43% reported they had gone up in the last six months, while 1 in 33 (3%) said they were currently behind on their rent or mortgage payments.
According to data from Pay.UK and Vocalink, average monthly mortgage payments made by Direct Debit have been rising steadily, from £718 in December 2021 to £868 in August 2023.
The proportion of mortgage payments made by Direct Debit which failed because of insufficient funds was three times higher in August 2023 than in June 2020.
You can use our Mortgage Calculator tool to see how mortgage repayment costs have changed around the country and enter your own inputs to personalise estimates for where you live.
According to our latest analysis of housing purchase affordability, in the year to March 2022, the average house cost:
8.4 years of income in England
6.4 years of income in Wales
5.3 years of income in Northern Ireland
5.1 years of income in Scotland
This is based on the average household income, but for those on the lowest incomes, the average house cost between 10 and 19 years of income depending on the UK nation.
A home is considered broadly affordable if it costs five years of income or less.
How this affects you
Related links
Read our summary of our current and future analytical work related to the cost of living.
The government is offering help for households. See what cost of living support you could be eligible for.
Explore the UK Measures of National Well-being dashboard, which tracks the progress of a range of factors affecting people’s lives. We have explained some of the findings from new measures added in 2023 in our Most adults report making some changes to their lifestyle for environmental reasons article.