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Home Press releasesProperty marketHouse prices set to rise by another £14,000 before the end of the year

House prices set to rise by another £14,000 before the end of the year

Row English HomesMarket analysis from London lettings and estate agent, Benham and Reeves, shows that – despite the wider economic backdrop – house prices could increase by a further 5% before the end of 2022.

The current period of economic difficulty looks set to remain for the duration of 2022 and into 2023. The current cost of living crisis and soaring interest rates are, according to many experts, expected to dampen the housing market boom by reducing buyer demand and, therefore, house prices after two years of extraordinary market activity.

Despite this, existing research predicts that the average house price in the UK is set to keep rising, increasing by 5% by the end of the year. Benham and Reeves estimates that this will add a further £14,320 to the average property value bringing it up to £300,717.

On a regional level, the biggest price increase will be seen in London where a boost of £26,896 will bring the year-end average to £564,816 having started the year at £518,028.

The London borough to see the biggest price increase will be Kensington & Chelsea (£68,103) followed by Westminster (£47,222), the City of London (£41,519), and Camden (£41,493).

Outside London, the South East will finish the year with the biggest increase with a £19,526 boost bringing the average price to £410,039. The increase in the East of England will be £17,724, followed by the South West (£16,116), West Midlands (£12,306), and East Midlands (£12,296).

The smallest end of year price increases are expected to be seen in the North East (£7,896), Northern Ireland (£8,453), and Scotland (£9,612).

Director of Benham and Reeves, Marc von Grundherr, commented:

“We keep waiting for house prices to plateau, but it’s just not happening. The pandemic-inspired boom in demand and value has supercharged the housing market to such an extent that it seems even a cost of living crisis and soaring interest rates can’t stop it in its tracks.

So much so that house prices are likely to keep on climbing as the year plays out and in some areas, this will equate to quite a significant increase in property values.

“As for if and when prices will finally fall – it’s hard to predict. But if this coming winter is going to be as tough as most are suggesting it will be, we might find that moving home is pushed to the very bottom of most people’s to-do lists and property values might, therefore, start to decline.”

Table shows UK’s estimated average house price by end of 2022, based on a predicted 5% rise
Location Average house price – January 2022 Current average house price – June 2022 Change (%) – Jan to Jun 2022 Est house price by end 2022 Est change £*
London £518,028 £537,920 3.8% £564,816 £26,896
South East £376,128 £390,513 3.8% £410,039 £19,526
East of England £336,951 £354,481 5.2% £372,205 £17,724
South West £308,545 £322,329 4.5% £338,445 £16,116
West Midlands £234,141 £246,114 5.1% £258,420 £12,306
East Midlands £231,940 £245,911 6.0% £258,207 £12,296
Wales £205,935 £213,091 3.5% £223,746 £10,655
North West £200,661 £212,347 5.8% £222,964 £10,617
Yorkshire and the Humber £194,956 £203,973 4.6% £214,172 £10,199
Scotland £183,253 £192,249 4.9% £201,861 £9,612
Northern Ireland £163,840 £169,063 3.2% £177,516 £8,453
North East £149,567 £157,924 5.6% £165,820 £7,896
United Kingdom £273,499 £286,397 4.7% £300,717 £14,320
Table shows London’s estimated average house price by end of 2022, based on a predicted 5% rise
Location Average house price – January 2022 Current average house price – June 2022 Change (%) – Jan to Jun 2022 Est house price by end 2022 Est change £*
Kensington and Chelsea £1,383,050 £1,362,055 -1.5% £1,430,158 £68,103
Westminster £1,051,851 £944,441 -10.2% £991,663 £47,222
City of London £796,047 £830,376 4.3% £871,895 £41,519
Camden £888,461 £829,857 -6.6% £871,350 £41,493
Hammersmith and Fulham £763,203 £772,447 1.2% £811,069 £38,622
Richmond upon Thames £737,433 £768,605 4.2% £807,035 £38,430
Islington £712,509 £717,487 0.7% £753,361 £35,874
Wandsworth £633,888 £638,841 0.8% £670,783 £31,942
Hackney £638,381 £628,690 -1.5% £660,124 £31,434
Barnet £581,453 £599,287 3.1% £629,251 £29,964
Haringey £587,816 £577,614 -1.7% £606,495 £28,881
Merton £562,550 £573,676 2.0% £602,360 £28,684
Lambeth £535,168 £544,772 1.8% £572,011 £27,239
Southwark £525,350 £542,971 3.4% £570,120 £27,149
Kingston upon Thames £529,531 £541,275 2.2% £568,339 £27,064
Ealing £517,791 £537,695 3.8% £564,580 £26,885
Brent £519,264 £528,087 1.7% £554,492 £26,404
Harrow £507,806 £523,509 3.1% £549,684 £26,175
Bromley £475,260 £508,545 7.0% £533,972 £25,427
Waltham Forest £477,390 £501,172 5.0% £526,231 £25,059
Tower Hamlets £452,502 £484,026 7.0% £508,227 £24,201
Redbridge £470,055 £473,163 0.7% £496,821 £23,658
Hillingdon £442,668 £465,352 5.1% £488,620 £23,268
Lewisham £434,549 £455,005 4.7% £477,755 £22,750
Enfield £430,961 £453,552 5.2% £476,230 £22,678
Hounslow £428,407 £441,269 3.0% £463,333 £22,063
Greenwich £413,921 £440,375 6.4% £462,394 £22,019
Sutton £417,482 £437,192 4.7% £459,052 £21,860
Havering £405,616 £428,989 5.8% £450,438 £21,449
Croydon £407,563 £416,641 2.2% £437,473 £20,832
Newham £398,575 £414,586 4.0% £435,315 £20,729
Bexley £380,927 £395,012 3.7% £414,763 £19,751
Barking and Dagenham £337,557 £342,083 1.3% £359,188 £17,104
London £518,028 £537,920 3.8% £564,816 £26,896

Average house price data sourced from the Land Registry
Projected house price change sourced from Zoopla
and applied to current property values

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About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents. With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 15 international offices.

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