New record for average UK house price
The Halifax has reported the tenth consecutive monthly rise in UK house prices, marking the longest run for 6 years. The lender, one of the biggest in the UK, reports that the average UK house is now valued at £286,079 for the month of April 2022.
The UK housing market continues to defy predictions and shows unprecedented growth. As the Halifax’s report states, “Average house prices are now up by £47,568 over the last two years. To put this in context, it took the previous five and a half years to make an equivalent leap (+£47,689 between October 2014 and April 2020).”
Growth forecast to continue
Despite the growing cost of living crisis in the UK and another increase in the Bank of England base rates, the market continues to grow.
Russel Galley, Halifax Managing Director says, “For now, at least, despite the current economic uncertainty, the strong increases we’ve seen in house prices show little sign of abating. Demand in the housing market remains firm and mortgage servicing costs are relatively stable with fixed-rate deals making up around 80% of mortgages on homes across the industry, protecting many households from the effects of rate rises so far.”
In general, homeowner borrowing is much safer than it was back in the early 2000s, when +100% mortgages left many exposed during the 2008 financial crisis. This is part of the reason why the UK house market is more recession-proof than it’s ever been.
House prices up 8.3% year-on-year
Hometrack’s report for March’s figures shows a similar trend, with UK house price growing by 8.3% yr-on-yr. High buyer demand continues to fuel these rises, alongside low supply. The report states, “High buyer demand is driving activity, with sales agreed in the run-up to Easter running c.27% higher than pre-pandemic levels.”
The last three months have seen the highest levels of growth registered since 2007. Regionally, the hotspots of Liverpool and Manchester in the North West have pushed house price growth in this region to 9.8%. Elsewhere, Wales and the South West both break double figures at 12.1% and 10.6% respectively.
Interestingly, the more modest house price growth in London of 3.6% is actually driving more demand in this area as affordability entices buyers to purchase. One to watch for future months.
Market collapse highly unlikely
As with the Halifax, Hometrack are predicting a slowing in market conditions, but by no means a collapse. They advise a slowing of demand but are still forecasting a 3% growth come December 2022.
To find out what the buoyant UK property market could mean for your investment, do get in touch to speak to our on our consultants.