Housing in the United Kingdom (UK) - statistics & facts

The housing market in the United Kingdom has grown substantially in the past decade, and the coronavirus pandemic, if anything, has boosted house prices and rents even further. In June 2022, the UK house price index stood at approximately 150 index points, an increase of almost 30 index points since the beginning of the pandemic. That means residential real estate prices grew by about 30 percent over 2015 values when the index value equaled 100. An important driver for demand and house price growth during this period was the low cost of borrowing which allowed home buyers to purchase a home with interest rates as low as three percent. Government schemes, such as the stamp duty holiday were an additional incentive for prospective buyers.

Homebuyer sentiment declining

The ongoing political instability, high inflation, and overall worsening economic conditions had a major impact on the UK housing market. In 2022, the market started cooling down, and the monthly volume of housing transactions fell notably. A December 2022 survey found that about half of UK adults were pessimistic about buying a home. Respondents identified the affordability of mortgage repayments as the number one barrier to homeownership. In just a year, the share of respondents worried about mortgage repayments spiked from about 40 percent to 66 percent. Other concerns with growing importance were the difficulty of raising a deposit for a mortgage and the likelihood of property price falling in the future. Despite these concerns, homebuyers in the UK were generally interested in the environmental sustainability of their potential home. About 80 percent of first-time buyers and 78 percent of repeat buyers considered purchasing a green home in 2022. Property features, such as energy efficiency, renewable energy sources, and energy-saving measures, were most popular and likely to fetch a price premium.

Where do house prices go from here?

In July 2022, the average house price in the UK was 292,000 British pounds. London, Cambridge, and Oxford saw house prices were as high as 400,000 British pounds, on average. In some London boroughs, the average home sold for over 800,000 British pounds. As the cost of borrowing increases and fewer transactions take place, house price growth slows down. The forecast for the development of property prices in different regions shows that housing in London is expected to experience the largest decrease, with a severe drop in 2023 and a gradual improvement in the next four years. Prime regional house prices are also forecast to decrease in 2023 and 2024. Rents, on the other hand, are set to continue to rise.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Aug 31, 2023

Key insights

Number of dwellings England
25m
Estimated number of housing construction starts UK
150,000
Residential property transactions completed UK
1.3m
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