UK House Price Index — National Overview

This series tracks the average UK house price from the official House Price Index. Big swings usually line up with changes in interest rates, credit conditions and the wider economy.

Some of the best-known periods in the modern UK housing cycle include:

• Late 1980s to early 1990s: a sharp boom followed by a crash, linked to high interest rates, the early-90s recession and a long period of negative equity for many homeowners.
• 2003—2007 credit boom and 2008—2012 correction: easy credit, high loan-to-value lending and strong wage and bonus growth pushed prices up before the global financial crisis triggered a sharp adjustment.
• 2020—2022 COVID and ultra-low rates period: stamp duty holidays, very low mortgage rates and a shift in housing preferences drove rapid price rises despite broader economic uncertainty.
• 2022 onwards — rate shock and affordability squeeze: the rapid rise in interest rates from late 2021/2022 has cooled activity and, in some areas, pushed prices into outright decline as affordability has been squeezed.

In combination with the other indicators on this site (rates, inflation, wages, unemployment, approvals and repossessions), the HPI series helps to show when the housing market is overheating, treading water or starting to come under pressure.