Annual house price growth for properties in England and Wales slowed to 7.8% in December, according to the latest e.surv House Price Index.

This was down from 9.2% in November, after the figure reached a peak last year of 12.9% in August.

e.surv’s index also showed that house prices in England and Wales rose on a monthly basis by 0.5% in December, taking the average price of a home in the two nations to £380,450.

The e.surv index shows that the average house price in December 2021 was £352,815, as house prices in England and Wales increased by £27,635 over the course of 2022.

“There are a couple of reasons why our findings are noteworthy,” said e.surv director, Richard Sexton.

“One is that we use all completion data for the period, from the Office for National Statistics (ONS) which includes cash sales and is the final price paid – as opposed to a price agreed earlier in the process such as at mortgage approval stage and therefore which might fluctuate subsequently.

“But the other point to be made is that the relative attractiveness of property remains in comparison to other asset groups over the longer-term. From the start of the pandemic in March 2020 to the end of November 2022, the average price paid for a home has increased by some £66,100, or around 21.1%.

“Housing as an asset group is still outperforming most other investments – particularly when you see that growth figure over the period is greater than that in consumer price inflation, including housing – CPIH, of 14.9% over the same period.

“It is very likely that whatever the economic weather the lack of supply will continue to underpin the relative strength of UK housing.”

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