House prices in the UK rose dramatically during the coronavirus pandemic, with growth slowing down in 2022 and turning negative in 2023. The year-on-year annual house price change peaked at 14 percent in July 2022. In June 2024, house prices increased by 2.7 percent. According to the Nationwide Building Society, the average house price exceeded 265,000 British pounds in 2022. Correction in housing prices: a European phenomenon The trend of a growing residential real estate market was not exclusive to the UK during the pandemic. Likewise, many European countries experienced falling prices in 2023. When comparing residential property RHPI (price index in real terms, e.g. corrected for inflation), countries such as Germany, France, Italy, and Spain also saw prices decline. Sweden, one of the countries with the fastest growing residential markets, saw one of the largest declines in prices. How has demand for UK housing changed since the outbreak of the coronavirus? The easing of the lockdown was followed by a dramatic increase in home sales. In November 2020, the number of mortgage approvals reached an all-time high of over 107,000. One of the reasons for the housing boom were the low mortgage rates, allowing home buyers to take out a loan with an interest rate as low as 2.5 percent. That changed as the Bank of England started to raise the base lending rate, resulting in higher borrowing costs and a decline in homebuyer sentiment.

One of several indicators for house prices published on a quarterly basis. The data are mix-adjusted and (unlike in the case of data from Halifax or Nationwide) are based on completed transactions. For the latest ONS release, see here.

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HOUSING INDICATORS

Nationwide Regional House Price Index (Quarterly since 1973) One of several indicators for house prices published on a quarterly basis. Nationwide External link

Halifax HBOS house price index (Quarterly since 1983) One of several indicators for house prices published on a quarterly basis. Seasonally adjusted data. Lloyds Banking Group plc External link

The Office for National Statistics (ONS) house price index (Quarterly since 1982) One of several indicators for house prices published on a quarterly basis. Office for National Statistics (ONS) External link

• Visit the Housing Indicators Visualisation page here

LABOUR MARKET INDICATORS

The unemployment rate. (Quarterly since Q2 1992) The unemployment rate measures the proportion of the economically active population (those in work plus those seeking and available to work) who were unemployed. Seasonally Adjusted.

• Visit the Labour Market Indicators Visualisation page here

TRANSPORT INDICATORS

London Underground Journeys (Monthly since 2006) including moving average and annual rate of growth

Bus Journeys (Monthly since 2006) including moving average and annual rate of growth

Passengers at London airports (Monthly since 1994) Monthly, and annual airport passenger figures including data from Heathrow, Gatwick, Stanstead and London City airports. Cival Aviation Authority External link

• Visit the Transport Indicators Visualisation page here

Affordability ratios calculated by dividing house prices by gross annual residence-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.