Housing Market: Key Economic Indicators

The House of Parliament Library has just released its regular report on Key Economic Indicators in the Housing Market

It can be seen here, and says:

House prices, as measured by the UK House Price Index, increased by 9.8% between March 2021 and March 2022. On a seasonally adjusted basis, average house prices increased by 0.6% between February and March 2022.

House prices grew at different rates across the UK’s countries and regions over the year to March 2022. House prices grew by 12.4% in the East Midlands, 11.7% in Wales and 11.7% in the South East. Growth was slowest in London at 4.8%, Scotland at 8.0% and the North East at 8.7%.

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 April 2022 were down 23% on a year ago and down 5.1% on March 2022.

Mortgage approvals decreased from 69,531 in March 2022 to 65,974 in April 2022.

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

 

The full report can be seen here.

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