UK house prices are, on average, £20,000 more expensive than last year at this time, despite showing signs that this growth is beginning to slow.
Median house prices rose 7.8% in the year from May 2021 to June, according to the Office for National Statistics.
This was down from a 12.8% increase in May 2022.
Experts say a perfect storm is brewing for the UK property market, a combination of record rising mortgage costs inflation levels and the steep cost of living.
All of these factors will continue to undermine demand levels in the coming months.
But in the past 12 months, the story has been one of growth, fueled by a low number of properties, lots of available capital, low interest rates and the desire to move homes during the pandemic.
Average prices rose over the past year to £305,000 in England, £213,000 in Wales, £192,000 in Scotland and £169,000 in Northern Ireland.
The largest increase was in Scotland, where the average house price increased by 11.6% over the year.
In terms of regional changes, the East had the highest annual house price growth of any part of England, with prices increasing by an average of 9.7% in the year to June 2022. This was lower than the growth rate of 14.5% in May 2022.
The lowest house price growth in England was recorded in the North East, where average prices rose 3.6% over the year to June 2022, up from 10.9% in May 2022, according to the ONS.
The North East also had the lowest house prices of anywhere in the country, averaging £158,000.
And it was property in London that remained the most expensive of any UK region, at a record level of £538,000 in June 2022.
A survey published last week shows that despite the decline in demand, house prices continue to rise.
The Royal Institution of Chartered Surveyors found that 25% of real estate professionals reported that inquiries from new buyers decreased 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.
Higher interest rates and the cost-of-living crisis were cited as some of the causes, although the survey was carried out before The Bank of England raised rates by 50 basis points last week. – the largest individual jump since 1995.
Despite this, property prices continue to rise due to lack of stock.
About 63% of the pollsters said they had seen prices rise in July, down from the 78% seen in April but still above the long-term average.