Housing Market: Key Economic Indicators

The House of Commons Library has released a report on key indicators.

It can be seen here:

House prices, as measured by the UK House Price Index, increased by 10.9% between February 2021 and February 2022. On a seasonally adjusted basis, average house prices increased by 0.8% between January and February 2022.

House prices grew at different rates across the UK’s countries and regions over the year to February 2022. House prices grew by 14.2% in Wales, 12.5% in East of England and 12.5% in the South West. Growth was slowest in London at 8.1% and the North East at 9.4%. House prices in Northern Ireland grew at 7.9%, although Northern Ireland’s growth was measured in the year to Q4 2021.

UK house price index

Bank of England data on the number of mortgages approved to finance house purchases are a leading indicator of house sales.

Mortgage approvals for house purchases reached a lockdown-related record low in May 2020. Approvals then increased significantly towards the end of 2020, reaching levels last seen in August 2007. They have fallen since. Mortgage approvals in February 2022 were 3.9% lower than in the previous month and 18.3% lower than in February 2021.

Mortgage approvals decreased from 73,841 in January 2022 to 70,993 in February 2022.

Mortgage approvals

Housing starts and completions fell sharply in Q2 2020 reflecting the coronavirus lockdown. They are now higher.

There were 41,600 house building starts (seasonally adjusted) in England in Q4 2021, a 3% decrease compared with the previous quarter and a 3% decrease compared with Q4 2020.

There were 41,330 house building completions (seasonally adjusted) in England in Q4 2021, a 4% decrease compared with the previous quarter. There were 11% fewer house building completions in Q4 2021, compared with Q4 2020.

Housing completions and starts

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