House prices in the UK are on average £20,000 more expensive than they were at this time last year, despite signs that this growth is starting to slow.
Average house prices rose 7.8% in the year from May 2021 to June, according to the Office for National Statistics.
This figure was down from a 12.8% increase in May 2022.
Experts say a perfect storm is heading for the UK property market, a combination of rising mortgage costs, record inflation levels and slope Cost of life.
All of these factors will continue to weigh on demand levels over the coming months.
But over the past 12 months, the story has been one of growth, driven by low property numbers, plenty of available capital, low interest rates and a desire to change homes during the pandemic.
Average prices have risen over the past year to £305,000 in England, £213,000 in Wales, £192,000 in Scotland and £169,000 in Northern Ireland.
The biggest increase was seen in Scotland, where the average house price rose 11.6% over the year.
In terms of regional changes, the East has seen the highest annual house price growth in all of England, with average prices rising 9.7% in the year to June 2022. This rate was down from a growth rate of 14.5% in May 2022.
The slowest house price growth in England has been in the North East, where average prices rose 3.6% in the year to June 2022, compared to 10.9% in May 2022, according to the ONS.
The North East also had the lowest house prices in the country, averaging £158,000.
And it was property in London that remained the most expensive of any region in the UK, reaching an all-time high of £538,000 in June 2022.
A survey released last week shows that despite falling demand, house prices continue to rise.
The Royal Institution of Chartered Surveyors found that 25% of real estate professionals reported a drop in inquiries about new buyers in July – the third consecutive month of decline.
Sales expectations over the next 12 months were the bleakest since March 2020, when the COVID-19 lockdown began.
Rising interest rates and the cost of living crisis were cited as causes, although the survey was carried out before the The Bank of England raised rates by 50 basis points last week – the biggest jump in singles since 1995.
Despite this, property prices continue to rise due to a lack of inventory.
Some 63% of surveyors said they saw prices rise in July – down from 78% seen in April, but still above the long-term average.