House prices up 9.5% in a year but slowdown has started

UK average house prices increased by 9.5% over the year to September 2022. This is down from 13.1% in August 2022 and 15.2% in the year to July. UK house prices remained unchanged between August and September 2022.

The average UK house price was £295,000 in September 2022. This is £26,000 higher than this time last year.

The ONS has published its UK House Price Index for September UK House Price Index summary: September 2022 – GOV.UK (

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown said: “After remaining buoyant for so long there are strong signs of gathering gloom over the UK housing market. Average prices are up 9.5% for the year which sounds great but when you compare it to the 13.1% and 15.2% recorded from August and July, we can see the market is starting to slow. Activity around the stamp duty holiday may well have inflated prices last summer but if we look shorter term house prices remained flat between August and September 2022.

“This is a clear indication the cost of living is starting to bite as people continue to tighten their belts in the face of rising costs. We can expect to see this continue over the coming months as the heady mix of rising interest rates and the prospect of a deep recession convince people to put off a house move until things look a bit better.

“This all adds to the tricky dilemma facing would-be house buyers – do they press on with their dream purchase or do they delay in the hope that prices drop. The answer depends on your own personal circumstances and it’s worth saying house price drops are guaranteed. If it’s a property you can afford without stretching yourself too much and you plan to stay there for the foreseeable future then it may still make sense to make the move. However, if costs are already tight then it might be better to stay where you are rather than stretch yourself further and potentially cause yourself problems later.”