Record house prices

UK house prices increased by 1.1 per cent in April – the 10th consecutive monthly rise, making it the longest run since 2016.

According to the latest Halifax Price Index, house prices are up £47,568 over the last two years, with the average price reaching a new record high of £286,079.

Halifax MD Russell Galley said: “Housing transactions and mortgage approvals remain above pre-pandemic levels and the continued growth in new buyer enquiries suggests activity will remain heightened in the short-term.

“The imbalance between supply and demand persists, with an insufficient number of new properties coming onto the market to meet the needs of prospective buyers and strong competition to secure properties driving up prices. “This demand is centred on larger, family homes, rather than smaller properties such as flats.

Over the past year, prices for detached and semi-detached properties have risen by over 12 per cent, compared to 7.1 per cent for average house price.

The South West continues to record the biggest increase, with year-on-year house price growth at 14.8 per cent and the average house price now breaking through the £300,000 barrier for the first time (£301,632).

“For now, at least, despite the current economic uncertainty, the strong increases we’ve seen in house prices show little sign of abating,” Mr Galley said. “Demand in the housing market remains firm and mortgage servicing costs are relatively stable with fixed-rate deals making up around 80 per cent of mortgages on homes across the industry, protecting many households from the effects of rate rises so far.

“The house price to income ratio is at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year,” Mr Galley said.

10 May 2022