UK average home prices rise 10.8% to record highs: Index

According to the index, house prices have risen at the fastest annual rate since February 2007, a record high.

According to Halifax, the annual rate of increase in home prices was 10.8%, the strongest since June 2007.

This rise has brought average home prices across the UK to a record high of £ 278,123.

Property value increased by 0.5% month-on-month.

Russell Galley, Managing Director of Halifax, said:

“This was the eighth straight month of rising house prices, as resilience, which has represented the market throughout the pandemic, shows little sign of easing.

“Year-on-year prices rose 10.8%, the fastest pace of annual growth since June 2007, pushing average home prices to a record high of £ 278,123.

“Two years after the pandemic began, average real estate prices have risen by £ 38,709 (16%) since February 2020. In the last 12 months alone, home prices have risen by an average of £ 27,215.

“This is the largest one-year cash increase recorded in an index history of over 39 years.”

Mr Galley said supply shortages continue to support rising house prices.

This could be a particular problem at the larger edge of the real estate market, he added. The price of single-family homes has risen by £ 43,251 or 11% over the past year, compared to the price increase of £ 10,462 or 7% for apartments.

He continued. “For the future, as Covid moves into the endemic stage and almost all domestic regulations are lifted, geopolitical events expose the UK to new sources of uncertainty.

“War in Ukraine is a human tragedy, but it can also affect self-confidence, trade and the global supply chain.

“The rise in oil and gas prices is one of the direct consequences: UK inflation has already peaked in 30 years and will continue for a long time to come.

“This will put pressure on already growing household income. Bank interest rates (Bank of England’s base interest rates) are likely to rise in the near future, but the extent of the rise will be in the coming months. It depends on the price and how it affects the payment approach of the company.

“These factors can weigh on buyers’ demand as the year progresses, market activity is likely to return to more normal levels, and home price increases are expected to ease.”

Halifax remains the highest performing region in the UK as a whole, with annual home price growth of 13.8% and average real estate prices of £ 207,184.

Southwest England also recorded a strong annual home price rise of 13.4 percent.

Northern Ireland also recorded a strong price increase, rising 13.1% year-on-year to an average real estate price of £ 173,911 in February.

Meanwhile, Scotland has the “weakest” rate of increase in home prices outside of London, Halifax said. This is despite an annual rise of 9.2%, reflecting high home prices across the UK. The average real estate price in February was £ 193,777.

London is the poorest performing region in the UK, with home prices rising 5.4% annually.

Jeremy Reef, a real estate agent in northern London and a former housing chairman of the Royal Institution of Charter Investigators (Rics), said: As a direct result of the lack of choice, this also puts the number of transactions at risk.

“It is unlikely that prices will continue to rise significantly, as affordability is increasing and events in Ukraine can further increase inflation, especially energy costs.”

Nicky Stevenson, Managing Director of Real Estate Agent Fine & Country, said:

PA media