London — UK home price increases accelerated in January, marking the strongest start of any year since 2005, mortgage lenders across the country said Tuesday.
House prices rose 1.1% in December and then 0.8% in January. A Reuters economist poll noted an increase of 0.6 percent last month.
House prices are 11.2% higher than January 2021 levels, the fastest annual growth rate since June, again above the consensus forecast of a 10.8% rise.
Other studies have pointed out that home prices have risen significantly even after the temporary tax incentives for real estate purchases have expired during a pandemic.
As in other countries, UK home prices soared during the pandemic as people were rushing to move to larger homes with gardens. Nationally, he said demand is likely to cool this year.
Robert Gardner, Chief Economist across the country, said:
According to the Bank of England, consumer price inflation is expected to reach a high of almost 30 years at 5.4% in December and peak at around 6% in April.
Samuel Tombs, an economist at consultancy Pantheon Macro Economics, said:
“After all, we believe that rising house prices haven’t been able to sustain their recent momentum, with monthly rises in the first half of this year averaging only 0.2%.”