£26,000 higher than 12 months ago, according to the Office for National Statistics (ONS).
The latest UK House Price Index from the ONS revealed average UK house prices have increased by 9.8% in the last 12 months to December 2022, down from 10.6% in November 2022.
Across the UK, average house prices increased over the 12 months to £315,000 in England (10.3%), £222,000 in Wales (10.3%), £187,000 in Scotland (5.7%) and £175,000 in Northern Ireland (10.2%).
The North-East continued to have the lowest average house price of all English regions, at £164,000 in December 2022, according to the data.
The East Midlands was the region with the highest annual house price inflation in December 2022. Average prices in the East Midlands increased by 12.3% in the 12 months to December 2022, down from an annual percentage change of 12.8% in November 2022.
London’s average house prices remain the most expensive of any region in the UK
London’s average house prices remain the most expensive of any region in the UK, with an average price of £543,000 in December 2022.
London was the English region with the lowest annual house price inflation, with average prices increasing by 6.7% in the 12 months to December 2022.
Jean Jameson, Chief Sales Officer at Foxtons, said: “Selling a house is a lengthy process, so it takes time to see the impact of market changes on house prices.
“While the industry is still reporting stagnant house prices, the result of a cautious market towards the end of 2022, Foxtons have seen strong appetite from buyers and sellers in the new year market, with a 20% increase in valuations and an 8% increase in viewings this January.
“At the same time, our partner mortgage advisory firm, Alexander Hall, have seen average fixed rate mortgages coming down – the average 5-year fixed rate is now 5.2%, down from 6.32% at the start of December. Market leading fixed rates now start from 3.95% for a 5 year and 4.25% for a 2 year.”
East Midlands saw the highest annual percentage change in private rental prices in the 12 months to January 2023
In the Lettings Agent Index of the ONS report, private rental prices paid by tenants in the UK rose by 4.4% in the 12 months to January 2023, up from 4.2% in the 12 months to December 2022.
Annual private rental prices increased by 4.3% in England, 3.9% in Wales, and 4.5% in Scotland in the 12 months to January 2023.
In England, the East Midlands saw the highest annual percentage change in private rental prices in the 12 months to January 2023 (5.0%), while the West Midlands saw the lowest (3.9%).
Sarah Tonkinson, managing director of Institutional PRS and Build to Rent, said: “Renters may need to change tactics in the coming year, setting aside more time for their property search and preparing to move fast when they see something they like.
“Our research suggests the market will grow steadily, with property coming to the market throughout the year instead of concentrated around the typical summer peak.
“This January had the highest average applicant budget we’ve reported in four years, as savvy renters hit the new year running.”