Halifax reported that the monthly growth in house prices increased to +0.5% in February 2022.
The surge marks the fastest rate of house prices since June 2007 (+11.9%). The current annual growth rate stands at +10.8% after exceeding eight consecutive months of a rise in property values.
As we reach the second anniversary of the coronavirus pandemic, the average house price reaches another new record high of £278,123.
The price of a typical home has risen by over £38,000 since February 2020, with £27,200 of this added within the last 12 months alone.
Wales was the strongest-performing nation or region in house price growth, with prices typically up by 13.8% over the past year, while southwest England closely followed at 13.4%. Meanwhile, the figure for London was 5.4%.
Russell Galley, Managing Director of Halifax, said:
“Looking ahead, as Covid moves into an endemic phase and almost all domestic restrictions are removed, geopolitical events expose the UK to new sources of uncertainty. The war in Ukraine is a human tragedy, but is also likely to have effects on confidence, trade and global supply chains.
“Surging oil and gas prices are one immediate consequence, meaning that inflation in the UK – already at a 30-year peak – will remain higher for longer. This will add to the squeeze on already stretched household incomes. While increases in Bank Rate look likely in the near term, the extent of the rises will depend on how it affects prices and companies’ approaches to pay over the months to come.
“These factors are likely to weigh on buyer demand as the year progresses, with market activity likely to return to more normal levels and an easing of house price growth to be expected.”
While the market may be challenging at the moment, our team of expert advisers at Cornerstone Finance can help you navigate it.
Whether you’re looking for a mortgage as a first-time buyer or an existing homeowner, please get in touch to find out how we can support you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.